POWERED BY MOMENTUM MEDIA
Fund members stick despite GFC
 |
| Fiona Reynolds
|
Most Australian superannuation fund members held firm to their existing funds despite the erosion of their returns through the global financial crisis (GFC), according to new research released by the Australian Institute of Superannuation Trustees (AIST).
The research, released today, was conducted by association professor Paul Gerrans, of Edith Cowan University, and looked at Australia’s six largest super funds managing a combined total of $74 billion in assets.
The study found that despite the investment reverses suffered as a result of the GFC,, less than 6.5 per cent of pre-retirement savings were transferred during a three-year period to June, with most members remaining within a default option.
Commenting on the research outcome, AIST chief executive Fiona Reynolds said the results highlighted the need for funds to have a well-designed default option.
“Whether through apathy, lack of knowledge or reasoned choice, most super fund members appear likely to stick with the default super fund setting which means it is absolutely critical that this setting is structured to deliver the best retirement outcome possible,” she said.
Reynolds said the outcome made it imperative that the Cooper Review into superannuation looked closely at default fund options given their prevalence in the sector.
AUTHOR
Mike Taylor
Recommended for you
Introducing reforms for strengthening simpler and faster claims handling and better servicing for First Nations members are critical priorities, according to the Super Members Council.
The Commonwealth Bank has warned that uncapped superannuation concessions may be “unsustainable” and has called for the introduction of a superannuation cap.
Superannuation funds have posted another year of strong returns, but this time, the gains weren’t powered solely by Silicon Valley.
Australia’s $4.1 trillion superannuation system is doing more than funding retirements – it’s quietly fuelling the nation’s productivity, lifting GDP, and adding thousands to workers’ pay packets, according to new analysis from the Association of Superannuation Funds of Australia (ASFA).
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom 465 Calder Road Calder
99.46 3 y p.a(%)
2
DomaCom DFS Mortgage
95.46 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
78.55 3 y p.a(%)
4
BetaShares Crypto Innovators ETF
50.39 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
47.50 3 y p.a(%)
