The head of the federal government's financial system inquiry has warned the prime minister's refusal to reform superannuation could undermine public confidence in the system.
Tony Abbott has ruled out changes to superannuation, despite concerns from experts that the system protects wealthy retirees from paying tax.
Financial System Inquiry chairman David Murray told Fairfax the government needed to move to preserve public confidence in the country's retirement savings regime, including the relationship between super, the age pension and the housing market.
"If the system is left as it is, it means that people who have money in the system [will continue] to understand so little about how it works generally and how it benefits them," he said.
"Disengagement drives politicisation of the system and people will start to question why we have it," said Mr Murray.
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