(Australian Associated Press)
Most Australians support an increase in compulsory superannuation, despite a growing number of people becoming unhappy about their fund.
A survey by ING Direct and the Financial Services Council shows that 80 per cent believe compulsory superannuation contributions should rise to 12 per cent from the current level of 9.5 per cent over the next decade.
The report also found that 51 per cent believe their super won’t provide enough income for retirement, with balances still low at an average of $70,000 for women and $110,000 for men.
Financial Services Council chief executive Sally Loane said that more flexibility needs to be built into the superannuation system to help boost super balances, especially for women.
“Australians recognise that periods of reduced or no workforce participation due to child or elder caring responsibilities play a key role in the gender gap, and they support more flexibility in the super system to help those who have taken career breaks to build their retirement savings when they can,” she said.
The survey showed 46 per cent believe that half a million dollars will be enough to provide them with a comfortable retirement, while 39 per cent say $1 million or more is the right amount.
It was also found that 38 per cent are unhappy with the fees they pay to their superannuation fund, up from 35 per cent in 2014.
Of those surveyed, 35 per cent say they would be likely to change their superannuation fund sometime in the future, up from 27 per cent a year ago.
In another report, released on Monday, showed the superannuation industry got an estimated $30 billion in fees in the 2014/15 financial year.
A study commissioned by Industry Super Australia found that 91 per cent of that revenue is paid to commercial wealth management businesses, but only nine per cent are paid to not for profit trustees.
Industry Super Australia chief executive David Whiteley said there is a lot of anxiety about superannuation about the way the big banks wealth management divisions operate.
“Compulsory superannuation is a foundation of our retirement income system, it should never be a honey pot for the big four banks,” he said.
The ING-FSC online survey of 1,236 working Australians with superannuation was conducted from 6-11 August 2015.