The superannuation industry has not yet jumped over two of the biggest obstacles to achieve an efficient retirement system – market risk and longevity.
That was the declaration from Queensland industry fund QSuper CEO Rosemary Vilgan at the opening session of the 2014 Association of Superannuation Funds of Australia (ASFA) conference in Melbourne.
Vilgan said the super industry retirement system is "good" at the moment but should be aiming for better, and eventually, the best.
"Best is a well-funded member happy they can rely on this industry," she said.
She said a "better" super system is where there are "great defaults" to answer three questions.
"How much will I have at retirement? What income will it produce and for how long? Is this industry thinking in both asset and liability space? Much much better is us being measured on this," she said.
The ideal member would've received sound financial advice; they do not look at their financial assets as just a number but they consider their assets relative to their desired retirement lifestyle, she said.
She also stressed the need for collective decumulation vehicles to address longevity risk. She recommended that members should pay premiums over extended periods.
"We may not be able to avoid a car crash of ever increasing longevity but we can introduce airbags that will avoid every member worrying about how long they will live," she said.
