Industry super funds continue to outperform retail funds with the performance gap widening, according to the latest independent SuperRatings data.
The median not-for-profit industry fund lead over bank-owned retail balanced options has steadily increased – 2.6 per cent over seven years; 2.7 per cent over five; 3 per cent over three; and, 3.1 per cent over one year.
Industry Super Australia Public Affairs Director Matt Linden attributed the widening performance gap between industry super funds and their retail rivals to the fact that the former offers members more.
“Industry super funds have long-term, nation-building investment strategies; deliver all profits back to their members; and are governed equally by employer and worker representatives,” he said.
“These new figures show that at least the retirement savings of industry super fund members are in good hands.”
Mr Linden said Australians should keep a close eye on how their superannuation fund is doing.
“It’s important that all Australians watch how their super funds are performing, as persistent shortfalls could result in having to work longer or retire with less,” he said.
SuperRatings found that Australian superannuation funds delivered an estimated 10.5 per cent average return over the 2017 financial year, the sixth consecutive year of positive returns and well above the annual 10-year average of 5.6 per cent.
In other superannuation news, the Federal Government has released draft legislation to protect workers’ superannuation entitlements and modernise the enforcement of the superannuation guarantee.
The Government says the draft laws will improve the reporting of superannuation obligations and enhance the Australian Taxation Office’s ability to get real time information about an employer’s compliance.
You can view the government’s draft legislation on the Treasury website.
What do you think? Is your money in an industry super fund or a retail fund? Have you considered switching?