Loane calls for implementation of ‘default once’ system

24 October 2019
| By Chris Dastoor |
image
image
expand image

Financial Services Council (FSC) chief executive Sally Loane has reinforced the need for important policy reforms, particularly the introduction of a ‘default once’ system for superannuation.

Speaking at the launch of the Melbourne Mercer Global Pension Index at the FSC, she said there needed to be greater focus on the implementation of outstanding reforms to superannuation and retirement systems.

“We know Australia’s world class superannuation system is being held back by outdated policy settings that create inefficiencies and erode retirement savings,” Loane said.

“We continue to urge the Government, and Parliament, to implement the recommendations of both the Royal Commission and Productivity Commission to reform default superannuation by introducing a ‘default once’ system.”

This system would create a single default account for superannuation members, like a bank account or tax file number, which would allow a simpler transition process when moving jobs.

“Decoupling superannuation from the industrial relations system is an essential reform to deliver a superannuation system that is fit for purpose in a changing economy and increasingly flexible work patterns, where the numbers of people with more than job is rising,” Loane said.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest developments in Super Review! Anytime, Anywhere!

Grant Banner

From my perspective, 40- 50% of people are likely going to be deeply unhappy about how long they actually live. ...

10 months 2 weeks ago
Kevin Gorman

Super director remuneration ...

10 months 3 weeks ago
Anthony Asher

No doubt true, but most of it is still because over 45’s have been upgrading their houses with 30 year mortgages. Money ...

10 months 3 weeks ago

The fund’s inaugural chief retirement officer is looking to establish a new venture. ...

30 minutes 46 seconds ago

The sovereign wealth fund remains cautious of the impact of high inflation as it announces a strong return in its latest update....

18 hours ago

In this latest edition, Anna Shelley, CIO at AMP, shares the fund’s approach to current market conditions and where it continues to uncover key opportunities....

19 hours ago