When they are not picking on the SMSF sector, industry superannuation and retail superannuation giants are belting each other over which is the more self-interested — a battle that would be amusing if the consequences weren’t so great.
On the one hand, industry super funds petrified of losing their protected status in awards are throwing mud at the retail sector in the hope they don’t have to compete on value and performance.
On the other hand, industry funds with their outdated fee models and conflicted advice are doing whatever they can to increase their funds under management and thus increase their fees.
Reece Agland, Superannuation Products and Services manager with advocacy group Taxpayers Australia, believes members are losing out any way industry bodies care to slice it.
“The sad thing is, while they are both concerned with their own self-interest, the ones they should be putting first — their members — lose out. Focus is being taken away from building the best outcomes for members. It is no wonder people are leaving to set up their own Self-Managed Superannuation Funds,” Agland said.
“Competition between funds and fund sectors is good for members. It should drive down costs and focus attention on getting them better results. However, the two sectors would rather spend time and energy protecting their current positions.”
The time has come for the government to ignore the blatant self-interest of all involved parties and foster more competition around the low-fee MySuper, by allowing greater choice of funds in the default sector. Competition, not structure, will be the only thing to drive prices down and improve outcomes for members.
