Perhaps the most pathological problem with super is the most neoliberal: An enormous, extractive financial sub-industry has been built around it. Currently Australia pays over $30 billion dollars a year in super fees. Much of this is skimmed from low-balance accounts belonging to the worst off. It’s nearly the size of the military budget (roughly $40 billion) and twice what the whole country spends on electricity.
There are tens of different super funds, but all perform roughly the same role. This multiplication of effort means Australia’s superannuation system is absurdly wasteful. Super fees add up to more than $1,000 for every person in Australia, every year. By comparison, Norway’s nationalized pension fund has over twenty times lower fees per invested dollar.