AUSTRALIA - Australia's superannuation industry has been described as a multi-billion dollar "battleground" in Deloitte's Actuaries and Consultants latest analysis of the industry.
In the report Analysis - A Multi Billion Dollar Battle, Deloitte said many argued that fund choice had been a non event, but its actuarial modelling debunked this as a myth. Actual fund switches, reported at levels of 3%-5%, involved billions of dollars each year.
Walker said: "This is just the tip of the iceberg. Many Australians are exercising choice by remaining in their current fund when they change employment. They are choosing not to move into the default fund of their new employer which goes largely unrecorded and remains invisible."
Deloitte took just one component of "visible" switching, and calculated that if industry funds reduced switching from about 2.5% to 1.25%, then by 2021 the industry funds would hold an extra 23% (A$200bn) of pre-retirement assets, and an extra 48% (about A$70bn) of post retirement assets.
Walker said: "Membership is both the battleground and the prize for superannuation funds.
"The key to success is product quality and the ability of a fund to engage effectively with its members and deliver tailored solutions to them.
"What we are observing, and what Deloitte believes will become more important, is that funds of all types will invest in improving their ability to engage with members. This will build relevance, and enable members to better tailor their super to meet their own individual needs."
The Co-operative Group's Somerfield Pension Scheme has completed a buy-in with Pension Insurance Corporation (PIC), insuring the benefits of its pensioner members.
Caroline Rookes CBE and Michele Hirons-Wood have joined The Pension Superfund's board of trustees to focus on maintaining governance standards and safeguarding member benefits.
The first specialist independent firm advising pension schemes on bulk annuities or moving to a consolidator has been set up with ambitions to shake up the market.