In making its detailed recommendations, the Inquiry has been guided by the following principles:
- Government intervention in the superannuation system should support a clear objective to provide income in retirement.
- Retaining freedom and choice within a compulsory system is fundamental to meeting the needs of individual superannuation fund members, even though this may involve costs.
- The efficiency of the superannuation system should be improved by policy measures aimed at removing barriers to innovation and increasing competitive pressures.
- In designing superannuation policy settings, policy makers should recognise and respond to consumers’ significant behavioural biases.
- Individuals should bear responsibility for their financial decisions.7 However, because of mandatory contributions and the implications of Age Pension outlays for taxpayers, Government has a responsibility to adopt policy settings that deliver appropriate outcomes for superannuation fund members.
7 Refer to Chapter 4: Consumer outcomes for more details.