Former Treasurer Peter Costello has accused the Labor government of being “blissfully ignorant” of the possibility that a 3% rise in the superannuation guarantee could lose Australians millions.
Calling for a full review of the superannuation industry, Costello has claimed that forcing Australians to increase the amount that they put into what could be loss-making super funds could severely dent their retirement nest eggs.
According to a Fairfax report, Costello is concerned about the small number of Australians that are aware of how poorly the superannuation sector has been performing in recent times, and that they may unwittingly be forced to put more money into bad investments.
“The current government and the current Treasurer are blissfully ignorant that they are requiring people to give up more and more of their income and lose it,” he told Fairfax.
''What they could well be doing is legislating people into bad investments,'' he added. ''I don't think the question is how much you're putting into it, I think the question is how much is going to come out of it?''
According to the report, SuperRatings figures reveal that the average balanced super fund has returned 0.3% over the past year, with rolling returns over the last five years coming in at a loss of 0.2%.
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