Original article by Michael Roddan
The Australian – Page: 22 : 20-Sep-17
KPMG has released a report which shows that the average superannuation fund balance on retirement is 6.2 per cent lower for members who have a default life insurance policy. However, life insurance fees means the average super balance on retirement is 14 per cent lower in the case of women whose annual income is less than $A37,000. Default insurance accounted for about 50 per cent of the $A14bn worth of insurance benefits that were paid out in the three years to June 2016. The Insurance in Superannuation Working Group will release its draft code of practice on 20 September.
KPMG AUSTRALIA PTY LTD, INSURANCE IN SUPERANNUATION WORKING GROUP, RICE WARNER ACTUARIES PTY LTD, RAINMAKER INFORMATION SERVICES PTY LTD, INDUSTRY SUPER AUSTRALIA PTY LTD, AUSTRALIA. PRODUCTIVITY COMMISSION