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Industry funds claim leadership
Industry superannuation funds are again claiming an advantage over retail master trusts on the back of research conducted by Sydney-based ratings house .
spokesman said the research suggested that industry superannuation funds could deliver $120,000 more retirement dollars to members than retail master trusts on the basis of their lower fees.
The SuperRatings model used average existing fee levels and projections over 40 years to give an indication of the potential impact of fee differentials between the industry superannuation fund and master trust sectors.
According to Weaven, the review found Australians could be almost 25 per cent better off in an industry fund, even if there was no investment outperformance, and that over a 40-year working life this could mean having more than $120,000 at retirement, measured in today’s dollars.
The SuperRatings methodology generates a net benefit to members’ outcome — something that has been challenged by other industry organisations and the retail master trusts.
However, Weaven claimed the net benefit to member calculation was the best measure of return to a member, as it closely resembled what actually happened to members’ accounts over a particular period of time.
“Contributions are received by the super fund and invested for the member. Fees, costs and taxes are taken away to give the final account balance for the time period,” he said. “Members see the growth of their retirement savings in dollar terms on their statements and SuperRatings has given them a dollar value to compare.”
AUTHOR
Mike Taylor
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