Australians entering the workforce now could retire with an extra $530,000 under a plan to overhaul the $2.8-trillion superannuation sector.

Sweeping changes recommended in the Productivity Commission’s latest annual report will see tougher standards to drive under-performing funds out of the market.

Employees would also be given a list of the top 10 performers when deciding where to store their retirement savings.

But a decision on whether to adopt the changes is on hold until after the final report from the banking royal commission.

Treasurer Josh Frydenberg tells Ross Greenwood Australians should be able to trust the system.

“There’s certainly some structural flaws that need to be addressed.

“If they are addressed, then there can be $3.8 billion of extra savings for people with superannuation.”

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