A respected think tank believes there are too many superannuation funds, many of which are charging excessive fees.
The Grattan Institute says in a new analysis that there is little evidence that funds that charge high fees provide better member services or perform well enough to justify the extra costs.
In a follow up to its "Super Sting" report released in 2014 that found Australians pay about $21 billion in super fees each year, the institute found that Australians are paying $4 billion a year above what is being charged by leaner operating funds.
It is supported by the findings of the financial system inquiry headed by former banker David Murray that argues that policymakers must do more to prune out poor products.
The Murray review released last December also recommends a "competitive mechanism" or tender to select default super products unless the industry becomes much more efficient.
The institute says administration fees are too high for both default and choice funds and take their toll on net returns.
"There are too many accounts, too many funds, and too many of them incur high administrative costs," the author of the new report Jim Minifie says.
Reform will help to address a fundamental threat to the adequacy of retirement incomes in Australia.
"They will reduce pressure on the age pension and the taxpayers dollar," he says.
The government has yet to respond to the Murray review.
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