The federal government will unveil changes to superannuation which will reduce unnecessary fees and charges that cost Australians $3.5 billion a year.
Assistant Treasurer Bill Shorten said on Thursday the Stronger Super package included a new low cost and simple default product called MySuper and heightened duties for superannuation trustees.
Mr Shorten said the superannuation industry processes an estimated 100 million transactions every year at a cost of $3.5 billion with the average transaction costing around $35.
"The government is acting to reduce the unnecessary fees and charges on working Australians' retirement savings, and to remove barriers to a low cost and efficient superannuation system," Mr Shorten said in a statement.
"We estimate that, in the long run, these reforms will save members $2.7 billion a year in fees."
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He said Stronger Super will improve the operation of the superannuation system and, together with the government's commitment to increase the superannuation guarantee to 12 per cent, will deliver a more secure retirement for Australians.
"Superannuation is one of the most important pillars of Australia's financial system," he said.
"It is one of the reasons Australia came through the GFC so well and it is a pool of national savings that place this country in an excellent position for future development."
