Australias $2.7 trillion in superannuation savings represents around 10 per cent of our economy. For many Australians, Superannuation accounts are now the second biggest asset after the familys home. But the Productivity Commissions review into the Superannuation industrys performance has revealed significant problems with underperformance. The persistent and significant gap between high and low performing funds is devastating the retirement incomes of average Australian workers. Persistent underperformance and fee gouging cannot be tolerated.
The lack of member engagement cannot provide cover to underperformance and rent seeking practices. While trustees are the guardians of member interests, the Productivity Commission and Banking Royal Commission have highlighted more is needed. There is an critical role for consumer advocates like Super Consumers Australia separate from the funds, the regulators, and the government to speak on behalf of member interests and to raise literacy and awareness.
Underperformance, attacks on the legislated SGL increases and the chronic problem of non-payment of superannuation estimated to be in excess of $6 billion a year are robbing Australians of their right to a dignified retirement supported by their superannuation investments.
Labor welcome the scrutiny and advocacy that Super Consumers Australia will provide on behalf of every day Australians.