“The Productivity Commission, in its 2012 inquiry into default superannuation funds in modern awards, noted that about 70 per cent of employees are members of the default fund selected by their employer, and of those who default into their employer’s default fund, roughly 80 per cent are in the default investment option,” said Mr Frydenberg.

“These statistics highlight that we need to do more – as government and as industry. I’m passionate about increasing levels of financial literacy across the community and am interested in partnering with industry on initiatives that can make a difference.”

Mr Frydenberg said industry and the government should not be content with the current levels of disengagement.

“It is here that I believe the [industry] has a unique opportunity to play a role to engage directly with employees at a workplace level, in a very practical way,” he said.

This may require further regulatory change in the area, including in relation to the effects of the FOFA laws.