Appendix B: AIST response to Productivity Commission's intended criteria and indicators for assessing competitiveness and efficiency of the superannuation system Issues paper PC - indicators within each PC proposed way AIST AIST comment criteria assessment criteria to measure and summary assess indicator C1. Is there Financial literacy of members C1: PC proposes AIST agrees that informed member engagement is theoretically informed compared to an ‘adequate’ using member desirable but believes that there is ample evidence that financial member standard (input) surveys, fund literacy is low across large subsets of the population and is not engagement? disclosures and improving (e.g. ANZ 3 yearly survey). AIST has very significant case studies to reservations about PC methodology in conducting member provide evidence. surveys for its Stage 2 draft report, and failure to consult on content or methodology for proposed survey addressing this issue. Behavioural economics says education and disclosure are not the answers to market weakness when consumer capacity is low, costs are immediate and any benefits are remote. C1. Is there Member superannuation and C1: PC proposes Note ANZ survey doesn't address insurance through super so informed insurance literacy#* (input) using member that will need to be specifically addressed member surveys, fund engagement? disclosures and case studies to provide evidence.
Appendix B: AIST response to Productivity Commission's intended criteria and indicators for assessing competitiveness and efficiency of the superannuation system Issues paper criteria PC - indicators within each assessment criteria PC proposed way to measure and assess AIST summary indicator AIST comment C1. Is there informed member engagement? Financial literacy of members compared to an ‘adequate’ standard (input) C1: PC proposes using member surveys, fund disclosures and case studies to provide evidence. AIST agrees that informed member engagement is theoretically desirable but believes that there is ample evidence that financial literacy is low across large subsets of the population and is not improving (e.g. ANZ 3 yearly survey). AIST has very significant reservations about PC methodology in conducting member surveys for its Stage 2 draft report, and failure to consult on content or methodology for proposed survey addressing this issue. Behavioural economics says education and disclosure are not the answers to market weakness when consumer capacity is low, costs are immediate and any benefits are remote. C1. Is there informed member engagement? Member superannuation and insurance literacy#* (input) C1: PC proposes using member surveys, fund disclosures and case studies to provide evidence. Note ANZ survey doesn't address insurance through super so that will need to be specifically addressed
sub039-superannuation-assessment.docx