Employee Rewards and Benefits News
Super funds could 'amalgamate Australian retirement savings'
Retirement savings belonging to most Australians could be funnelled into a new generation of "low-cost, no-frills superannuation funds" under a brand new plan from the federal government.
A report for Business Day revealed that a review commissioned by the central authority discovered that the super industry, which is valued at around $1 trillion (£562 billion) should be overhauled to reflect how most people do not have a huge amount of say in the management of their pension.
As a result, it is believed that citizens of Australia will be better served with a single investment strategy and limited financial advice instead of the "more costly options" which are naturally adopted because they are there.
Despite that, those who still want a major degree of control over their superannuation fund, as well as additional pension options, need to be given more investment options and opt for higher-cost and tailored funds as well as self-managed super funds.
The Australian Council of Trade Unions recently criticised proposals of Liberal leader Tony Abbott, who said that he wanted to reintroduce measures which could see workers losing pay and pension rights and unfair dismissal protection.
Written by Elizabeth Mewes
