Updated: Jun 25, 2021
Australian Super System is currently worth $3 trillion and is the fourth largest in the world. This is supposed to be the nest egg of 16 million Australians who wish to enjoy a higher standard of retirement.
Unfortunately, the system that is responsible to look after this nest egg has its flaws. One of them is the staggering annual fee of $30 billion charged to the members’ balance, not to mention insurance premiums. This is higher than what we pay for energy ($27 billion) or water ($12 billion).
The new law called Your Future, Your Super will change this system and make it better for Australians in four ways:
Your superannuation follows you, From 1 November 2021, where employees do not choose a super fund, most employers will have to check with the ATO if their employee has an existing super account, known as a 'stapled super fund', to pay the employee's super guarantee into.
Empowering members, A new YourSuper comparison tool for individuals to be able to compare key data on MySuper products and choose a well-performing product that meets your needs.
Holding funds to account for underperformance, protecting you from poor outcomes and encouraging funds to lower costs and fees to boost Australians’ retirement incomes.
Increasing transparency and accountability for how superannuation funds use members’ savings.
With these changes, Australians will save about $17.9 billion over the next decade.