Insurance in superannuation reforms could drive retirement savings
The Productivity Commission has recommended an overhaul of the multi-billion dollar business of selling insurance through superannuation policies to drive retirement incomes higher. Key reforms include making insurance an opt-in for fund members aged under 25 to stop the erosion of retirement funds for low-balance fund holders, and a ban on super funds from putting in place insurance cover on accounts where no contributions have been made for the previous 13 months.