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Changes could mean $500k boost

5 million Aussies are gearing up to take on the big banks in the largest class action in Australian history.

Australians could be $500,000 better off.Source:Supplied

Australians could reportedly retire with an extra $500,000 in superannuation if the federal government adopts the recommendations of a report into the $2.8 trillion sector.

Revoking the licences of superannuation funds that persistently underperform is among advice in the Productivity Commission’s report, The Australian, Sydney Morning Herald and The Age report.

The prudential regulator would strip the licences of funds that lag behind for eight years, if they fail to improve their results within a year.

The commission’s report, to be released on Thursday, also recommends Australians be given a list of the 10 best superannuation funds to choose from when they start a new job.

That advice had been included in the commission’s interim report in May, and is expected to boost Australia’s retirement savings by $165,000.

Treasurer Josh Frydenberg says the report shows the superannuation system is serving the nation reasonably well but there are “significant issues to address”.

“We are committed to putting the interest of all member’s first,” he posted on Twitter on Thursday.

The Productivity Commission has also maintained advice from its earlier report to grapple with the high number of unintended multiple accounts Australians hold.

About a third of accounts, or 10 million, are accidental multiples, the authority’s investigation found.

Australians could be $500,000 better off.

Australians could be $500,000 better off.Source:Supplied

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