Australians do understand superannuation despite having low levels of engagement and are likely to reject any government interference in changing the current default super fund regime according to Shadow Minister for Financial Services and Superannuation Bernie Ripoll.
Speaking at the SMSF Association conference held in Melbourne Ripoll said "Australian's do "get" superannuation even if they don't understand all its complex parts".
"They may not necessarily engage with super early enough, but they get that it is their money saved for their retirement."
In this light he said Australian were likely to reject any changes being suggested around default super arrangements and that Labor remained committed to making no changes to super within the political decision making cycle.
"The current system allows individuals the freedom to decide, based on their own circumstances, how their savings should be allocated and spent in retirement. And the reality is that there is no evidence that people are wasting or misspending their savings as some may suggest," Ripoll said.
"I have no doubt that Australians would not only be resistant of any attempts by government in changing existing mandates but also distrustful."
He said people wanted certainty around the sustainability and longevity of super and the Labor Party had already proposed to move super away from politics.
"Labor does not believe Superannuation should be an area of conflict between political parties and between competing interests within the sector. We continue to be prepared to have an open dialogue with the Government around any proposed changes to make superannuation more sustainable," Ripoll said.
Ripoll also called for consensus among superannuation providers stating that agreement within Parliament was assisted by industry agreement outside of Canberra stating that while competition was part of the sector his role was to drive a common policy debate around clearer rules and guidance, consistency of change, and new solutions to current and future issues within the sector.
