Clarify goals and purpose of super: IPA

The Australian superannuation system lacked a measured purpose, the Institute of Public Accountants (IPA) said, as it welcomed Federal Treasuer Scott Morrison's push for a Productivity Commission's inquiry into the sector.

IPA chief executive, Andrew Conway, said the super system should be measured on achieving its clearly defined purpose, otherwise it would not be able to support the needs of the ageing population.

"With the upcoming budget expected to tinker even more with superannuation, the need to clarify the goals and purpose of superannuation becomes even more imperative," he said.

Consumers needed to be engaged with their super, and financial literacy needed to vastly be improved, Conway added.

"At the very least, consumers should be able to adequately compare fees and returns with other similar funds on a like-for-like basis, which means information needs to be disclosed in a more effective way."

He said the IPA believed the objective of the super system should be based around three main themes, which took social and fiscal considerations into account.

Those themes are "adequacy", to ensure that all retirees had a replacement income which gave a minimum standard of living, "sustainability", so the system could support itself financially and "be capable of delivery require benefits into the future", and "integrity", so the system was transparent, well governed, regulated, and had the public's confidence.