CHOICE welcomes superannuation review
But consumers need a super "voice".
CHOICE has welcomed the final Cooper report into Australia's Superannuation System which 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, the consumer group says MySuper will be a low cost way of saving for retirement.
"This will be one of the biggest issues going forward as more and more people emerge out of the accumulation phase into retirement," says CHOICE spokesman Brad Schmitt.
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.
"More and more there is a need for a specialist organisation to assist super fund members with problems and complaints," says Schmitt.
"We are disappointed this wasn't mentioned in the final report and we'll be appealing directly to the Government to address this issue."
While it hopes the move against insurance commissions will provide the groundwork for a wider ban on commissions for risk products, CHOICE says it's concerned at the lack of any proposal to increase the minimum life insurance level (currently $50,000) within superannuation.