Bill Shorten calls for more innovation in super industry

23 November 2012
| By Staff |
image
image
expand image

Superannuation companies offering simpler products that require fewer decisions from members and reduce administration fees are likely to see a commercial benefit in the long run, according to the Minister for Financial Services and Superannuation, Bill Shorten.

Speaking at the launch of ANZ's new superannuation offering Smart Choice Super, Shorten said it had become "fashionable" to focus on the challenging issues facing the super industry when there was in fact a significant amount of innovation taking place.

"What motivates the Government is the desire to maximise Australians' retirement savings," he said.

"With Australians paying on average around 120 basis points for their super, I believe there needs to be downward pressure on fees in superannuation."

With Smart Choice offering a single investment fee of 0.50 per cent and an annual administration fee capped at $50 with no commissions, Shorten said propositions like this would put pressure on other super funds to decrease costs and return some of that margin to the consumer.

He said the MySuper reforms, by placing pressure on fees, are estimated to save Australians $1.7 billion in fees annually in the longer term.

In relation to ANZ's offering, Shorten said it was also "sensible" to give consumers the ability to access their super accounts at their own convenience through online, mobile and tablet platforms.

OnePath head of director super and investments Patrick Clarke said: "You want to be able to see how your super is performing, you want to see whether your employer is making contributions and you want to see what your super is returning." 

As part of the Smart Choice offering, life-stage risk is managed by automatically resetting the client's asset allocation annually, effectively moving them from growth to more defensive assets over time, Clarke said.

In addition, ANZ is also offering a free super consolidation service to customers.

"I believe Government policy settings work in lock step with the sort of innovation we're seeing today and elsewhere," Shorten said.

"It will enhance competition between super funds and it will provide more returns to consumers."

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 1 week ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 1 week ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 3 days ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks 1 day ago

Having divested its advice business in August, AMP is undergoing restructuring in at least four other departments amid a cost simplification program....

2 weeks 5 days ago