Australia floats shake-up of $2 trillion pension system, “zombie” insurance
Fund managers who perform poorly face being locked out of Australia’s A$2.6 trillion ($1.96 trillion) pension industry if recommendations from the government’s top economic advisory body are implemented.
The Productivity Commission said in a report on Tuesday that a shortlist of up to 10 strong-performing pension products, chosen by an independent panel, should be presented to workers from which to choose when they enter the workforce.
If adopted, the Commission’s model would replace a system whereby the employer chooses a fund for any worker who does not nominate a preference, regardless of the product’s performance, fee structure or insurance arrangements.
Read More: Euro News
