THE superannuation industry’s attack on a controversial proposal for a universal retirement fund has widened with financial planners arguing that the market, rather than the government, was best placed to determine super products.

The comments by the Financial Planning Association follow four of the nation’s most powerful retirement savings lobby groups last week joining forces to argue against the scheme proposed by Jeremy Cooper, who is leading a Rudd government review of superannuation.

The lobby groups called on the proposed default fund be scrapped, labelling it expensive and not in the interest of fund members.

The FPA yesterday questioned the need for a national default fund. “The FPA supports the concepts of greater protection and simplicity for consumers but is concerned that a narrowly defined default superannuation structure would further remove decision-making and choice from consumers,” it said in its submission to the Cooper Review.

“Similar products such as Australia’s retirement savings accounts and stakeholder pensions in the UK have failed because the government intervened in product design in an attempt to reduce costs, rather than let the market determine how it should respond to consumer needs.”

Planners weigh in against Cooper plan