Senator Jane Hume said the newly-proposed stapling initiatives will force superannuation funds to take better accountability and create a new level of engagement with members.
The Assistant Minister for Superannuation, Financial Services and Financial Technology told the recent Household Capital Third Pillar Forum that stapling will provide members a higher standard of living in retirement by eliminating unintended multiple accounts and holding super funds accountable to underperformance.
Referring to the proposals introduced on budget night, Hume made it clear that members can change super fund providers at any time using the comparison tool.
Super funds will be forced to provide members an eight-year rolling performance measure highlighting where it is underperforming or "not living up to its own standards," she said.
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Hume also hinted that the highly-anticipated Retirement Income Review is a comprehensive analysis of the three pillars of the retirement system and will not offer recommendations.
She stayed mum about when the final report will be released other than it is still "sitting on the Treasurer's desk."
She did however say that the 650-page report, which is a deep dive into the three pillars of the Age Pension, superannuation and voluntary savings, and does not propose recommendations similar to what the Productivity Commission would do.
Hume said that paving the "glide path" between accumulation and decumulation phase was an important consideration the review is attempting to address.