People approaching retirement may soon get a better idea of their income after a life of saving in superannuation.
One of the 44 recommendations made in the federal government's sponsored independent review into the financial system is seeking super funds to develop default retirement products.
Financial Services Council boss John Brogden strongly supports this recommendation.
Speaking after the review's release on Sunday, he said this is essential for those people who have been disinterested in their super and have solely had default accounts for their compulsory super guarantee payments.
"It's critical you have some guidance on how you utilise your fund during retirement to insure you get the best return," Mr Brogden told reporters in Sydney.
Treasurer Joe Hockey released the report after a year-long review by its chair David Murray, the former boss of Commonwealth Bank of Australia and inaugural head of the Future Fund.
Mr Hockey said the government would be responding to the recommendations after March next year following further consultations.
It is the first such review since the Wallis report in 1997 in which time the pool of super funds has exploded from $300 million to $1.8 trillion.
The report suggests there should be a review of MySuper products in 2020 to insure they have been effective in significantly improving competition and efficiency.
Shadow treasurer Chris Bowen, a member of the Labor government that brought in the MySuper legislation, thought this this was a sensible approach to give MySuper a chance to work.
"My Super is designed to reduce the cost of superannuation. I'm confident it's well calibrated," Bowen told reporters in Sydney.
The review also believes funds should have a majority of of independent directors on their boards.
But head of Industry Super Australia David Whitely disagreed, saying industry super funds are "carefully and scrupulously" overseen by trustee boards made up of employer and employee representatives, a model common across the OECD.
David Lane, director of wealth management at Pitcher Partners, said the recommendation of removing direct borrowing by self-managed super funds is likely to have a significant impact on the residential real estate market, while being well received by the Reserve Bank.
"Investment borrowing has been driving much of the recent boom in residential property prices," Mr Lane said.
He said while it is unclear how many of these are from SMSFs, "anecdotally we believe that there are a significant number".
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