Cooper’s super effort!
The Cooper Review into superannuation was given the brief of making superannuation simpler, safer and more efficient.
After studying the ten recommendations included in the report, delivered on the last day of the financial year, I think they have achieved exactly that.
It is refreshing to read a report, written in plain English by a lawyer, which sets out simple recommendations for something that has become an overly complex nightmare for many Australians – their superannuation.
Since the Keating Government introduced compulsory superannuation in 1993 all working Australians have become super savers of one sort or another. But according to research by analysts, SuperRatings, about 80% of us have just selected the default fund, either too lazy, confused or disengaged to take a more hands-on approach. And we have paid dearly for this selection, still being charged high trailing fees for very little service.
At one level you might argue that we therefore all deserve the worst treatment that a financial services industry driven by profits has to offer.
Or you may be more charitable, as Mr. Cooper and his panel of six men and one woman have been, and insist the default option, to be called MySuper, will at least be free of commission.
Not content with simplifying and improving the funds offering, the Cooper Review has also recommended a substantial streamlining of the administration of super accounts. Called SuperStream, it will deliver combined savings of $1.55 billion (short term) and $2.78 billion (long term). This translates into cuts of about 40% in fees for average individuals, lifting final superannuation balances by $40,000, or seven per cent, after 37 years in the workforce.
It’s not often a review commissioned by the Federal Government can be described as a ‘no-brainer’ but this one surely has to be it!
Congratulations to the Cooper team.
What do you think?