You web browser may not be properly supported. To use this site and all its features we recommend using the latest versions of Chrome, Safari or Firefox

We are continuing to serve clients during the COVID-19 pandemic More Info.

Investment Statement Cropped

The Productivity Commissions’ final report into the superannuation system released today found the current system is “harming millions of members” with underperforming funds, multiple accounts and excessive fees.

Report findings

On 10 January 2019, the Productivity Commission released its final report into the superannuation system. Much like the Banking Royal Commission, the final report is particularly critical of the retail sector, both for underperformance and exorbitant fees.

The final report found a significant number of super products were underperforming and that “most (but not all) affected members are in retail funds.” The report found that 77% of 5 million underperforming super accounts were in retail funds.

The report identified 32 funds which generated a median net return of 5.5% per year, while 21 funds generated a median return of only 3.8% a year for members.

If a typical worker is in one of these bottom quartile funds, they might have $500,000 less at retirement age.

The report also found that Australians pay over $30 billion a year in fees on their superannuation accounts. And while our super system is generally competitive internationally, our fees are high by international standards.

The Productivity Report comes as another welcome shake up to the superannuation industry.

You can view the final report here.

Get Your Super Back

In response to details uncovered throughout the Royal Commission into Banking, Slater and Gordon announced the launch of the Get Your Super Back in September.

The Get Your Super Back campaign will aim to claw back money we allege was stripped by the big banks from the retirement savings of ordinary Australians. We expect that around one third of the adult population may be eligible to join the class actions.

Find out more or register here.

The contents of this blog post are considered accurate as at the date of publication. However the applicable laws may be subject to change, thereby affecting the accuracy of the article. The information contained in this blog post is of a general nature only and is not specific to anyone’s personal circumstances. Please seek legal advice before acting on any of the information contained in this post.

Thank you for your feedback.

Latest blog posts

Class Action
Understand the Banking Royal Commission in 3 minutes

The Royal Commission into the banking sector has been a game changer. It has smashed through the walls of the banking sector and exposed its dodgy culture to the light. The problem is there's just so much detail and noise that most people don't have time to stay across it. But you are – and will continue to be – affected. So it pays to take a few steps back and look at what's happened to date, and where things are likely to head. Essentially, scandals had been mounting for over a decade. It had become clear the problem was systemic: an anything-goes culture that promoted profit above all else. The lack of transparency and accountability, along with a leaky compliance structure, was...

Royal Commision Blog Asset
Class Action
Are you paying too much in super fees?

Ever had that moment at the mechanic when your car's malfunction is described to you in baffling detail to justify the bill you're about to receive? Did you just nod along, take deep breath, and pay it? Well, a similar dynamic has long operated in the superannuation sector. For the minority of people who even get around to opening their superannuation statement, a bewildering array of fees may await: investment fees, admin fees, advice fees, switching fees, indirect costs, the list goes on. But super is a complicated business. How can the average person possibly work out whether the fees they are charged are reasonable or not? The problem is a lot of super funds, mainly those owned by the...

Super Piggy Bank Cropped
Superannuation and Insurance
Understanding superannuation investment options

Choice is good. More choice is better. But is there a limit? The French have a saying: “trop de choix tue le choix" (too much choice kills the choice). That might sound delightfully abstract most of the time. But in the case of superannuation, death by excessive choice doesn’t actually seem all that far-fetched. In a market where everyone essentially wants a similar outcome – to invest a portion of their wages to create a retirement nest egg – there is an unbelievable level of customisation possible. Currently there are some 40,000 superannuation investment options. 39,200 are options for retail fund members. It's important to note the stark difference between retail and industry...

Super Investment Cropped

We're here to help

Start your online claim check now. Or, if you have a question, get in touch with our team.