The Cooper Review is finally out and among its major recommendations is the formal establishment of a default superannuation to be labelled as MySuper, which is aimed to simultaneously slash superannuation fees and fatten retirement funds.

The proposal mandates the government to legislate MySuper as the default superannuation fund for employer superannuation, making it the automatic recipient of the nine percent employer contribution in the event that a worker fails to nominate a specific superannuation fund.

That nine percent of course would eventually hit 12 percent as stipulated on the proposed tax measures by the government, which would take effect by 2019.

Once adopted, the new system is set to cover an estimated 80 percent of Australian workers and would reduce a maximum of 40 percent in fees, at the same time increasing average retirement fund by $40,000, according to the government.

Superannuation Minister Chris Bowen said today that the new scheme should boost the country's retirement benefit system since "every dollar we save in unnecessary fees and costs will help Australians' retirement savings go further."

The reforms are seen to reinforce the government's commitment to the proposed 12 percent minimum contribution by 2019 and once fully implemented, it would be the system's most major revision since the guarantee's introduction in 1992, which should cut away commissions and minimise fees that deplete retirement nest eggs.

By 2035, the government is predicting that Australians would have accumulated a superannuation balance of up to $6.1 trillion as against the present balance of $1 trillion and by that, the government said that essential reforms must be implemented to ensure that efficiency, simplicity and cost-cutting would be further improved in running the system.

Mr Bowen lauded the superannuation system as well-oiled machine over the last 35 years though he admitted that improvements in the system must be introduced to face the present challenges that it faces.

The Cooper Review also highlighted the need to for a much stricter regulation of the system and called into attention the level of management fees being charged, as it advocated for Australian Prudential Regulation Authority (APRA) to be given the oversight powers to benchmark the system.

In view of the existing market volatility, the review also called for better governance from superannuation fund trustees and explicitly recommended for the formulation of new code of governance that would guide the system.

It also suggested that aside from provisional disablement and death, some types of insurance should be separated from the system in order to protect the fund from unnecessary claims and employees must be given the right to dump their coverage if they opted to.