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The final Cooper report into Australia's Superannuation System was released in July 2010. CHOICE is pleased the report has addressed a number of key concerns, including the need for a lowcost default super option for consumers.
With Government estimating a 40% lowering of fees, CHOICE believes MySuper will be a low cost way of saving for retirement.
Other initiatives supported by CHOICE include proposals for greater transparency to allow consumers to compare funds (fees and performance), the use of Tax File Numbers to tackle the problem of multiple accounts and the proposed ban on sales commissions on insurance products.
However, CHOICE is disappointed the Cooper report failed to recommend a properly funded advocacy centre that focuses purely on members' superannuation needs and which is essential to any superannuation reform. CHOICE thinks that there is a need for a specialist organisation to assist super fund members with problems and complaints.
CHOICE hopes the move against insurance commissions will provide the groundwork for a wider ban on commissions for risk products, but is still concerned at the lack of any proposal to increase the minimum life insurance level (currently $50,000) within superannuation.
See our full list of articles on Superannuation and read CHOICE's submission. Response to the Super System Review Phase 2 (December 2009), The Cooper Review.