Australia announces pension reforms

The Australian government has given final details of the reforms it has planned for Super – the country’s compulsory pension fund.

All of the measures are good news for the millions of Australian and foreign workers who qualify for a Super fund. But while some of the changes will be trickled out over the coming months, many of the most significant won’t take effect for years.

The latest announcement from the Gillard Government concerns the setting up of a new, low-cost default fund for those workers who haven’t specified a fund for their pension contributions. Many expats may have money tied up in default funds, as they are unaware of the investment choices available and are more concerned with their existing company pension scheme.

From October 2013 all employees must given access to MySuper, a low-cost default fund, which could slash the fees paid by up to 40 per cent, the government claims.

Source: Telegraph.co.uk