Policy makers need to scrutinise bank funds

Policy makers should start demanding answers about why not-for-profit industry superannuation funds continue to outperform bank-owned funds, Industry Super Australia (ISA) believes.

ISA pointed to SuperRatings’ data for the decade ending 31 May 2017 which found that industry funds in the SR 50 Balanced Option outperformed bank-owned super funds on average by two per cent.

ISA public affairs director, Matt Linden, said the two per cent difference could cost $200,000 in savings at retirement for the average earner.

Related News:

“With pension access tightening, compulsory superannuation is becoming increasingly central to the wellbeing of Australians as they age,” he said.

“This chronic under-performance of retail funds, which hold just over a quarter of all super savings, should be a big concern for forward-thinking policy makers.

“But when it comes to returns on the retirement savings of hard working Australians, the silence is almost deafening.”




Related Content

Low account balance pre-retirees looking to super funds

Up to a quarter of pre-retirees are as likely to look to their superannuation funds as they are to ask financial planners for retirement income advice...more

AMP remains focused on super

Superannuation and retirement incomes have been revealed as sitting front and centre of AMP Limited’s strategy, following its announcement today of ...more

A decade late but SCT gets it right

Superannuation fund trustees have been placed on notice by a recent Superannuation Complaints Tribunal (SCT) determination that there are no excuses w...more

Author

Comments

Add new comment