For a moment, Australia's superannuation system was beyond the magic $3 trillion mark. But, COVID-19 momentarily set the sector back, according to new data.

Senator Jane Hume has said the compulsory nature of superannuation allowed super funds to become lazy, creating inefficiencies in the system. She has also hinted the government will soon turn its attention back to the Productivity Commission's recommendation of a best-in-show list.

For the second consecutive month, Australia's MySuper options have generated positive returns, after a couple of negative months due to the COVID-19 pandemic.

A new paper published by Actuaries Institute says current taper rates may be encouraging middle-income earners to spend their retirement savings too quickly and live on the Age Pension alone.