Stephen Long (ABC economics correspondent) won a Walkley award for this 2010 piece on the low returns made by Australian superannuation funds; Fairfax economics journo Peter Martin picked up the theme this week with a scoring critique of fund managers' prowess (or lack of it).
They're both strong pieces, and are finding a lot of resonance. I disagree, however, with Peter Martin's suggestion in his piece – confirmed when I asked him – that compulsory superannuation is a bad idea, full stop. (Which is not to say that he'd like to see it ditched, now that it's here.)
That many funds (and the system as a whole) have been delivering poor returns is indisputable, and it's also plain that fees are too high. I see that as issues within the system requiring reform, though, rather than crippling flaws.
Certainly, I'm troubled – and annoyed, at a personal level – that funds have not delivered good returns. But I wouldn't do away with the whole kit and caboodle just yet.
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