Alan Kohler has cashed in the franchise with a piece in the Australian today advocating that Super be nationalised.
Superannuation is the only product where choice and competition are not only completely pointless, they are counter-productive.
That’s because choice and competition just set up inequality: different people end up with vastly different retirement outcomes through no fault of their own, as a result of making an uninformed, barely conscious choice 40 years ago.
That’s why there should be one national fund, providing whole of life savings. That is, not simply coughing up a cash lump sum at retirement, to be taken off to a financial adviser and skimmed and invested until it’s all gone.
Mandatory super savings should be collected into a single national fund that saves to retirement and then pays a pension until death. It should be a continuum.
Competition should be confined to the fund managers competing to manage the money by providing the best returns and lowest fees.
I’ve got a better idea – why not simply let the politicians spend our Super on nation building exercises and then pay us a pension out of future tax revenue? What could possibly go wrong?