Shuttering failing Australian pension funds and stopping new accounts being opened when changing jobs will add almost A$100,000 ($77,160) to the retirement savings of young workers.
Minister for Superannuation Jane Hume is shepherding new laws through Australia’s parliament to revamp the industry to weed out under-performing funds and make pension accounts automatically follow workers when they change employers.
It’s designed to protect the retirement savings of the most disengaged Australians — one-in-five of whom have never contacted their fund. Hume estimates that a young person going into a super fund for the first time will be around A$98,000 better off at retirement after the reforms.
Author(s): Matthew Burgess, Shery Ahn, and Paul Allen
Publication Date: 8 February 2021
Publication Site: Bloomberg