Bill Shorten calls for more innovation in super industry
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."
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