Super Consumer Australia says employees are missing $ 500,000 in retirement savings due to poor super
Revealed: Millions of Australians have poorly performing super plans – failure to trade can cost you $ 500,000 by the time you retire
- Super Consumers Australia says more than 170,000 a year put into a bad super plan
- They estimate that this could see someone missing $ 500,000 on retirement
- Group Director Xavier O & # 39; Halloran compared super with a & # 39; unfortunate lottery & # 39;
- It only wants to choose the best performing products for standard accounts
Australians who are too apathetic to look around for better plans for super cancellation may miss $ 500,000 by the time they retire.
Superconsumers Australia said more than 170,000 people had parked their superannuation on a poorly performing account in a given financial year.
The acting director of the consumer interest group Xavier O & Halloran said the standard super system was a bad lottery.
More than 1.6 million Australians are turning their savings into a poorly performing super account, a study by the Productivity Commission last year revealed.
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Australians may miss out on $ 500,000 in retirement savings because they are apathetic. Superconsumers Australia said more than 170,000 people had parked their superannuation on a poorly performing account in a given financial year
& # 39; These superannuation laggers continue to attract tens of thousands of new members each year through a poorly designed standard system, & # 39; said O & # 39; Halloran.
& # 39; Our superannuation system is a & # 39; unfortunate lottery & # 39; for too many Australians. & # 39;
In 2017-18, 176,000 standard superannuation new accounts were created for MySuper products in the bottom 25 percent of artists.
These accounts have been added to the million worst performing MySuper accounts.
Super Consumers Australia quoted research from the Productivity Commission that calculated that someone with his savings was on a bad standard account by the time they retired, was $ 502,000 worse.
Our own research showed that standard products such as BT and industry funds Mine Super and WA Local Government Super were particularly bad.
& # 39; We need the regulators to take real action to eliminate these laggards, but we recognize that this will take time & # 39 ;, said Mr. O & # 39; Halloran.
& # 39; The work of the regulator will be made easier if we stop growing while running products through a poorly designed standard system. & # 39;
The Productivity Commission quoted study that calculated that someone with his savings parked in a bad standard account by the time he retired was $ 502,000 worse
Super consumers Australia wants the federal government to change the law so that only the best performing products can be used for standard super.
It also wants funds to be prohibited from creating duplicate accounts, which often leads to the erosion of retirement savings.
Australia's savings are now worth $ 2.9 trillion, or nearly a third more than Australia's $ 2 trillion economy, making it the fourth largest private pension pool in the world for a country with 25 million people.
Super contributions from employers have been mandatory since 1992 and rise from 9.5 percent to 12 percent from July 2025.
In July, the new liberal senator Andrew Bragg, former policy director at the Financial Services Council, who represents super funds for the retail trade, called on low-income workers to choose super.
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