Attached is a video looking at the findings by the Productivity Commission at inefficiencies with Australia’s superannuation industry.
What’s interesting is that they highlight 2 things that are structurally incorrect, 1. That employees need to add a new account when they change employees (this is costing investors $2.6 billion per year in fees/ premiums) and 2. Underperforming funds which on average is costing up to 40% of retirement income or in dollar terms approximately $658,000.
The recommendation going forward is to set up an independent panel of experts to choose best of breed solutions and to have one account so duplication and unnecessary fees and commissions aren’t charged.
For more information on how PE Capital can assist you with providing competitive alternative solutions, please visit us at http://www.pecapital.com.au
The PE Capital Team