Long-awaited reforms to the Australian superannuation system have finally been agreed.
Due to a compulsory super system introduced in the early 1990s, Australia has the world's fourth biggest pension funds pool - now worth $A1.3 trillion.
But Radio New Zealand's Sydney correspondent says the system in recent years has been criticised for being too complex, too expensive and over-burdened by choice.
Now the federal government has won agreement from all sides for the introduction of a new low-cost default product called My Super.
From 2013, funds will have to offer consumers a low fee, simple broadly diversified strategy without any bells and whistles.
Back office administration is being streamlined and commissions paid by funds to advisers will be banned.
Treasury estimates the changes will mean a 30-year-old full-time worker on average pay will have an additional $A40,000 savings on retirement.