Confidence needed in super system

Research released last week shows many people continue to find superannuation a difficult topic to understand.

According to Minister for Financial Services and Superannuation, Bill Shorten, with more than $1 trillion reportedly invested in Australian super and $20 billion in lost super, it is vital all Australians have confidence the super system is “working in their best interests”.

“Reforms to super announced by the federal government will make it easier for Australians to be reunited with their lost super so they make the most of their savings for the future. The reforms will also help to ensure that these savings are protected,” Mr Shorten said.

Key research findings showed:

• people’s level of interest with their super varies depending on how old they are, how financially literate they are and the amount of superannuation they have saved;
• the majority of people across all age groups were not confident they would have enough superannuation to retire and live comfortably on; and
• overall, employers believe super is beneficial to their employees and the general Australian population to reduce the reliance on the pension.

The federal government will:

• increase the Superannuation Guarantee rate from 9%-12% benefitting 8.4 million Australian workers;
• abolish the age limit for Superannuation Guarantee, meaning no matter what your age if you are working, you will get super;
• provide an extra superannuation contribution for 3.6 million Australians earning up to $37,000, which includes a lot of part time workers as well as low income earners;
• make it easier for people to see all their super accounts (active, inactive and lost) in the one place and consolidate this money with a simple online form;
• give employees certainty by requiring their superannuation information to be on every payslip;
• introduce a simple, low cost MySuper product so people only pay for what they need; and
• introduce greater efficiencies to reduce overhead costs for super funds, resulting in lower fees for fund members.

The central focus of these reforms is to reportedly help improve retirement incomes by removing unnecessary complexities and ensuring the system operates in the best interest of its members.

Recent enhancements to the online tool SuperSeeker will also reportedly make it much easier for people to keep track of their super. By logging into a secure system people will be able to see details of their active accounts, as well as any lost super and super that the Australian Taxation Office (ATO) holds on their behalf.