Fri, 21st Feb 2025

On this week's episode of Financial Services Online, we discuss the Australian superannuation scene. The recent rise in median growth of super funds is attributed to domestic and global share gains, especially from the U.S tech and European sectors. Super fund leaders emphasize the role of fund preservation, recommendation for increased contribution rates to 12%, and reassessment of investment strategies at the Professional Planner Advice Policy Summit. However, the industry faces possible shake-ups via proposed Senate reforms, which entail external penalty sources and has led to statements of concern about financial strain. One of the largest super funds, Cbus, received scrutiny from APRA over risk management and expenditure, indicating a movement towards stronger regulations. A tax cap on superannuation legislation encounters opposition in the Senate on account of potential broader impact. Despite some turbulence, technology is forecasted to enhance member services.