Super timebomb? Australia's superannuation system outdated says landmark Productivity Commission report

Australia's superannuation system is an "unlucky lottery" for many members, with nest-eggs being eroded by unnecessary fees and underperforming funds. 

A damning draft by the Productivity Commission out today says the $2.6 trillion industry created by Labor Prime Minister Paul Keating in 1992 now has major structural flaws. 

Commission deputy chair Karen Chester tells ABC's Peter Ryan that workers should be given a single default account when they start their careers to eliminate multiple accounts and fees that run into billions of dollars each year.

Listen to my report from this morning's AM program where I speak with Productivity Commission deputy chair Karen Chester

Read my story from ABC News Online

Here's the Productivity Commission's draft report