The sector is destined to become bigger than the $5.3 trillion banking system, but it’s badly unprepared for what happens when retired members draw down on their accumulated balances.
ASIC deputy chair Sarah Court. The watchdog has announced its new focus on super funds. Penny Stephens
The new multi-regulator assault on big super challenges the three key claims of Australia’s internationally regarded $4 trillion compulsory retirement income system, beginning with the ideal that the mega union-influenced industry funds will always be there to manage their members’ comfortable retirements.
Then there’s the claim that big super will stabilise, rather than destabilise, the economy during financial crises. And third, that the industry funds will continue to deliver superior investment returns, particularly compared with the for-profit retail funds.
Michael StutchburyEditor-at-largeMichael Stutchbury is editor-at-large. He is in his fourth decade of writing for and editing national newspapers. After nearly six years as editor of The Australian, he returned to the Financial Review as editor-in-chief (2011-2024). Email Michael at mstutchbury@afr.com
