The Commonwealth Treasury has revealed that Australians are paying $20 billion annually for Superannuation at an average of $726 for each member – that’s three times more than what we’re supposed to pay, according to Treasury Director David Gruen.
Addressing the Committee for the Economic Development of Australia, Mr. Gruen pointed out a recent study by Grattan Institute that slashing fees to half of the lump sum can result to a 20% increase in retirement incomes. He also reveals that Australian fees cost three times more than Britain, calling for significant reduction of fees would benefit the country as a whole. He points out that government initiatives, such as MySuper and Superstream have to be reviewed, as these products are deficient in covering for longevity risks.
Read more about this on the Sydney Morning Herald website.