The prudential regulator has warned too many Australians remain in underperforming super funds and are paying too much to do it.
The prudential regulator has warned too many Australians remain in underperforming super funds despite it and the government putting poor nest eggs on notice.
In a speech on Monday, Australian Prudential Regulation Authority deputy chair Helen Rowell said funds had been able to cope with the onslaught of COVID-19 but too many members remained in accounts where fees were too high and returns below average.
“The pandemic and the associated expansion of early access arrangements presented major
operational and financial challenges that I am pleased to say the super industry has managed
well through this health and economic crisis,” she said.
“The flip side, however, is that inaction, or inadequate action, by some funds has meant that
too many members still remain in funds where fees are too high and returns are too low – and that is not good enough by anyone’s standards.”
Ms Rowell’s comments follow pledges by the Morrison Government to introduce new superannuation laws that will increase the supervision across the near $3 trillion retirement savings sector.