Funding the establishment of an independent Superannuation Consumer Centre that will help Australians better understand their retirement incomes is a positive step that will benefit many Australians in their later years, COTA Australia said today.
“There is a real lack of understanding of the superannuation industry among Australians of all ages,” Ian Yates Chief Executive of COTA said.
“The Superannuation Consumer Centre can help many Australians get a better understanding of what their retirement will look like, and the income they will have when they finish work; and help ensure consumer interests are always at the forefront of super funds planning .
“COTA is pleased that the funding model means that the Centre will be completely independent”
“Many Australians only realise that their retirement funds are inadequate after they reach retirement age and they receive their money in a lump sum.
“For many, this lump sum is the largest amount of money they ever receive in one payment, and they need sound strategic advice on how to use and invest it properly in order to have enough to survive into the future.
“The way superannuation works is a complex system, and many Australians feel short changed when they find their retirement funds are not adequate to support them for the rest of their lives.
“Any initiative that helps Australians be smarter about their retirement finances and funds be more responsive to all consumers’ needs is welcomed.
“However the Government’s $10 million commitment towards improving consumer protection is dependent on matching funds from the industry to ensure the long term maintenance of the Consumer Centre at a viable level of operation.
“We urge the private sector to also invest in this consumer centre that will help the industry improve its operations by focusing on the best interests of all Australians as they grow older.”
Media contact: Ian Yates 0418 835 439, Anastasia Stomo 043 224 3389