Why the disruptive super reforms will leave members better off
The crackdown on superfluous accounts and underperforming funds and products is already producing tangible improvements.
Deborah Ralston
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Compulsory superannuation has been a key pillar of our retirement system. It allows people to achieve a retirement income that reflects their pre-retirement income, and as the system matures, people will increasingly fund more of their own retirement to the benefit of both individuals and Australian taxpayers.
The current system has two main problems, however. First, the focus of superannuation has often been on building larger balances through increased contributions without sufficient regard for lower fees and higher investment returns. And second, while compulsory contributions ensure a better retirement outcome, members are often disengaged and don’t make the right choices to maximise retirement savings.