Coalition stance puts superannuation at risk for 5 million working Australians

The Liberal and National Parties are putting the retirement security of more than five million working Australians at risk by attacking Australia’s world-class industry superannuation funds.

Statements by Liberal Leader Tony Abbott that are reported in The Australian newspaper are not only factually incorrect, they could leave working Australians tens of thousands of dollars worse off in retirement says the ACTU.

The truth is that working Australians are better off with an industry super fund. All the official data shows this to be case.

Earlier this month, reported figures by the Australian Prudential Regulation Authority show that industry funds are continuing to outperform retail funds with a 9% rate of return versus 6.5% in the past year and 4.5% versus 2.9% over 10 years.

The proof of the pudding is in the eating. And when it comes to super the proof is that industry funds are better than retail funds.

Industry super funds are governed by a combination of both union and employer representatives. They adhere to world-class standards of governance and have delivered superior returns to the for-profit retail fund sector since their inception.

Mr Abbott should instead be focussing his attention on the governance arrangements of the retail super funds and their links to the profit-driven big banks.

It is a travesty that so many working Australians are worse off in retirement by thousands of dollars as a result of the relative poor performance of the retail funds. The Coalition should be concerned about how the retail funds have been ripping off the retirement savings of millions of working Australians through higher fees and poorer investment returns.

Unions are calling on the Coalition to rethink their stance on superannuation and to support the Labor Government’s legislation to increase superannuation to 12%.

The legislation is due to be voted on in the Senate in the next few weeks and unions are calling on all political parties and Independents to support the superannuation increase.