Super Consumers Australia said although the new Reporting Retirement Framework announced on Wednesday as part of the government’s new superannuation reforms will provide transparency on retirement products, it won’t be ready until 2027 and there is already data available from the regulator that has not yet been published.
“Most retired people with super are in account-based pensions today, which are similar to how super is invested during your working life, but we have no idea which funds are better than others when it comes to the retirement phase,” SCA deputy CEO Katrina Ellis said.
“APRA has been sitting on the data to compare fees and historical returns in account-based pensions for several years. We don’t need to wait several more years, the data should be published now.”
Ellis said Australia’s retirement system is complex and does not support people with safe products and independent guidance. and although the government’s reforms are a first step towards improving the system, the benefits would not be seen for several years.
“A strong super system needs to be underpinned by high-quality advice and guidance. Reliance on super funds for advice and guidance has come at a cost. Our recent report on fund retirement calculators showed many of them had serious failures,” she said.
She continued that SCA was keen to ensure the voluntary best practice principles announced as part of the reform package would focus on delivering good customer outcomes, including fit-for-purpose retirement products that delivered a dignified standard of living and standards for timely service from super funds.
“We’d like to see mandatory standards rather than voluntary principles. If you look at the customer service failures that came to light last week, it is clear that this is not an industry that has a strong appetite for self-improvement in the absence of government direction,” Ellis said.
“It’s one thing for super funds to agree to best practice principles that they may voluntarily adhere to, but it is another thing for those best practice principles to result in good customer outcomes. We will engage with the consultation process to make sure this happens.”
