Super Duper

Much has already been written and said about the Productivity Commission’s report into superannuation.  But this quote from Industry Super Australia chief executive David Whiteley, as reported in the AFR, makes the cake.  When commenting on the recommendation that workers be defaulted into a fund only once in a lifetime, Mr Whiteley said:

This means that teenagers are being asked to make decisions about their retirement. You couldn’t find a cohort of our community less informed, less engaged and less interested in retirement than teenagers. It’s quite baffling.

Dear Mr Whitely, here is a starting list of people could are less informed, less engaged and less interested in the retirement of the teenagers whose money is being force-ably taken away:

  • Mr David Whiteley
  • Industry Super Australia
  • ACTU
  • 99% of Industry Funds
  • 99% of Retail Funds
  • 100% of financial planner working on commission

There are many more for this list, but the point is made.  No-one cares more about their health, wealth and happiness than the person whose health, wealth and happiness is at question.  And certainly not anyone or any organisation whose economic prosperity relies on clipping the wealth of said person.

Follow I Am Spartacus on Twitter at @Ey_am_Spartacus

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8 Responses to Super Duper

  1. Clerical Error

    Whitely gives the game away. The PC plan gives industry funds a preference in listing a top 10. Whitely by his remarks confirms that most funds don’t care about performance, but about the stuff going on behind the scenes = the sinecures, the consulting, the trips, conferences, kickbacks to unions and mates, “investments” and so on.
    How did CBUS go in its plunge into Melbourne live theatres? How did Media Super go with its investment in New Daily? What was the business analysis of these decisions?
    I’d really love to see a break down of consulting fees and so on across the sector, including the various industry bodies.

  2. RobK

    I think you have belled the cat with this one Sparty. Well done. It just shows how far these finance types blow smoke up their own preverbial. They firmly believe they have products to sell and other peoples money is a commodity only the anointed are able to deal with.

  3. JohnL

    “All hats and no cattle” – meaning:
    Thy haven got a fucken clue!

  4. BoyfromTottenham

    Spartacus – I think that your point about ‘engagement’ is far less important than the huuge elephant in the room – under then PM Paul Keatings’s 1992 superannuation changes, management of investment risk was largely taken from those those who are most capable of understanding and managing investment risks (those managing various defined benefit funds) and forced on those who are least able to understand manage that risk (Joe Public). This is evidenced by the fact that ‘investment advisers’, including super funds themselves, have no fiduciary responsibility for their advice – so poor Joe Public has to sign that whilst accepting this ‘advice’, he is solely responsible for the outcome of his investment choices. Until this changes, or the majority of the public wakes up and educate themselves about this simple fact, IMO government fiddling with super will not substantially improve outcomes for the average punter. I was fortunate enough to learn this lesson a couple of decades ago, and educated myself about super.

  5. NuThink

    Woody Allen said in one of his movies that he was an investment advisor on Wall Street. When questioned what that means, he said that he helps people with their investments until there is nothing left.

  6. The BigBlueCat

    No-one cares more about their health, wealth and happiness than the person whose health, wealth and happiness is at question. And certainly not anyone or any organisation whose economic prosperity relies on clipping the wealth of said person.

    Indeed, the Super funds have no concerns about charging high fees on low balance accounts, denying the beneficiary the invested funds. This used to be called larceny ….

  7. old bloke

    BoyfromTottenham
    #2724065, posted on May 30, 2018 at 1:38 pm

    This is evidenced by the fact that ‘investment advisers’, including super funds themselves, have no fiduciary responsibility for their advice – so poor Joe Public has to sign that whilst accepting this ‘advice’, he is solely responsible for the outcome of his investment choices.

    I’m not sure that this is the case. The Trustees of a superannuation fund do have responsibilities to the fund’s members, to obtain for them the best possible returns for the lowest cost.

    Trustee responsibility is a personal obligation, more onerous I believe than the responsibility directors of a limited liability company may have. In the event of malfeasance, poor administration of the fund, whatever, the Trustees are PERSONALLY liable to make up the shortfall.

    If this commission finds that some trustees have been managing the funds without due diligence, expect a few ex-union trustees to have their houses on the market.

  8. miltonf

    David Whiteley is the Chief Executive of Industry Super Australia and leads ISA’s advocacy efforts on behalf of Industry SuperFunds and their members.
    David is a director of the ACTU’s member services arm, Member Connect. He is also a member of the Department of Management and Marketing Advisory Board, The University of Melbourne.
    David has previously served as a director at HESTA, a director of STA and an Alternate Director of AustralianSuper and member of the Audit, Compliance and Risk Management committee at AustralianSuper. David has served as a member of the Investment Advisory Board of IFM Investors.
    David has worked in financial, commercial and industrial roles in Australia and the United Kingdom and holds a Bachelor of Commerce (Hons) and Masters of Commerce.
    Another ACTU son of toil. Not.

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