A secret plan to nationalise Australia’s $3 trillion super system could rob millions of workers out of six figure sums all to provide a slush fund for political pork-barreling, a new report has found.
A cabal of politicians want to funnel millions of Australians into a government-run super fund, with some MPs lobbying the Treasurer to convert the Future Fund into a default super fund.
But new Industry Super Australia (ISA) modelling shows that a 30-year-old worker in such a government-run fund would pay exorbitant fees, earn lower investment returns and end up $126,000 worse off at retirement compared with being in a top-performing industry fund.
The report Nationalising Super: Why politicians should keep their hands off your retirement savings reinforces earlier evidence from the Productivity Commission (PC) that a government-run super fund would be prone to political interference and riddled with conflicts of interest.
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