Superannuation Under the Microscope: Fees, Taxes, The Gender Gap, and Annuities

#10. Co-hosts Sarah Penn and Neil Benson discuss the latest news and issues affecting the Australian superannuation sector. We cover:

• Big fines in the industry: ASIC and CBUS settle member claims delays with a $23.5 million fine, highlighting the financial pain for profit-to-member funds and contrasting it with corporately-owned funds like Macquarie.
• Super tax complexity: The introduction of new rates brings the tally to 20 different tax rates within superannuation, sparking debate about fairness and system complexity.
• Gender disparity in super balances: Data shows continuing gaps between men’s and women’s average and median super balances, with recent policy changes like paid super on government maternity leave seen as marginal improvements.
• Divorce and superannuation: Settlements rarely reflect the true value difference between super balances and physical assets, impacting long-term retirement outcomes, especially for women.
• Fee trends: Despite falling headline fees for six consecutive years, the total super sector fees have climbed in dollar terms, raising concerns about the real impact of the race to the bottom and its effect on administration quality.
• Member communication and personalisation: Most super fund communication is still generic and lacks true personalisation, missing opportunities to increase engagement and education.
• Retirement income covenant and annuities: Growing attention on how funds can help members better manage income in retirement, including new product ideas like digital forms presenting personalized drawdown rates; discussion on whether mandated annuities could be a future government intervention.
• Feedback - we love it: let us know what you think and we'll give you a shout out on the show.

Follow us on Linkedin and join the conversation!