News

The Cooper Review was initiated in 2009 to help deal with the challenge Australia is facing with having an ageing population. The review extensively examined the governance, efficiency, structure and operation of Australia's superannuation system. Many recommendations were made that are meant to enhance Australia's world class retirement savings system. The Government has suggested support for most items and will make a formal response later this year.

5 of the key highlights from the review are:

1) Engagement: Whether Australians like it or not, it is compulsory to contribute into their super. As the review suggest however, members should not have to be interested, financially literate or engaged to get the most out of it. Whether members are engaged or not at all, the system should work so that they both can get the most out of their super.

2) MySuper: This is a simple product that is aimed to be suitable for the majority of members. It is aimed at lowering costs whilst still maintaining a competitive streak. Essentially it is designed to simplify, add scale, transparency and comparability to default investment options.

3) SuperStream: To help bring the back-office of superannuation into the 21st Century there were a package of measures recommended. Key components include the increase use of technology, uniform data standards, use of tax file number as key identifier and straight through processing of superannuation transactions.

4) Helping members compare: In order to help members make the right superannuation choices, depending on their personal situations, they should be able to make 'like with like' comparisons between funds. Standard product dashboards and standardised investment performance reporting should help lift the fog that is currently clouding this area.

5) Dollar Savings for members: It is estimated that MySuper and SuperStream proposal will see a cut of around 40% in fees for the average member. It is projected that this will lift their final superannuation balance by around $40,000 or 7% after 37 years in the work force.
 

For more information and to read the complete Cooper Review report visit: http://www.supersystemreview.gov.au/