The immediate concern of limiting the damage of coronavirus has seen many areas of public life reviewed. This is true of superannuation as the budget unveiled further micro reforms, the increase of the SG stalls and employment structures evolve towards casualisation. This session considers whether the superannuation system needs to be re-designed to mirror a changing world.
Amara Haqqini, Director, insights and strategy, Milliman
Darren Wickham, Executive general manager – group life, TAL Australia
Rob Prugue, Founder, People Reaching Out to People
Moderator: David Bell, Executive director, Conexus Institute
A Brave New World of Super
- Micro reforms to superannuation announced in the Morrison Government’s 2020 Budget run the risk of confusing consumers and having a negative impact on insurance in super.
- A proposal for workers to take their super with them when they change jobs, called stapling, as well as funds facing annual performance tests and public ranking by the tax office will have far-reaching impacts on the industry.
- Reforms “run the risk” of confusing super consumers and did not consider older Australians seeking more choice, according to Milliman Director of Insights and Strategy Amara Haqqani.
- APRA’s MySuper Product Heatmap, which provides assessments of the performance of every MySuper superannuation product and is designed to lift industry practices and enhance member outcomes by publicly identifying underperforming products, doesn’t work when comparing funds offering choices for older Australians and retirement products, Haqqani says.
- The investment environment is so unstable and projects such meagre returns that it’s difficult to immunise. Government errs on the side of subjectivity but it serves no purpose, according to Rob Prugue, Callidum Investment Research Principal.
- 60 per cent of the audience polled during the “Brave New World” session said micro reform changes in Budget and impending governance provisions had been negative for insurance services received by super members.