Industry super funds rule league

Industry superannuation funds may be copping relentless criticism from the Turnbull Government, but in the five-star stakes, they are flogging bank and other for-profit funds.

Comparison site Canstar’s latest value-for-money rating of super has given five stars to seven funds – and all are not-for profit outfits that return all investment earnings to members.

Based on a person in their 60s with a super balance of $180,000, the best-value funds in 2018 are:

  • AustralianSuper
  • CareSuper Personal Plan
  • Catholic Super Member Plan
  • Energy Super
  • HESTA Personal Super
  • StatewideSuper Personal Plan
  • VicSuper FutureSaver

Despite industry and not-for-profit funds consistently outperforming retail counterparts, Revenue and Financial Services Minister Kelly O’Dwyer was bashing them again last week.

Speaking at the AFR Banking and Wealth Summit, she criticised industry funds’ calls for an increase in workers’ contributions to super, saying they were spending members’ money on lobbying.

“The superannuation industry is often very quick to point out that the only way that people can achieve higher incomes in retirement is by compelling an ever-increasing amount of wages to be sacrificed into superannuation. But they would say that wouldn’t they?” Ms O’Dwyer said.

She continued that fund managers stood to benefit from extra bonuses if the super guarantee was increased from 9.5 per cent to 12 per cent.

“And that is before you take into account all that additional money sloshing around for other cultural practices that have built up along the way. For example, members of superannuation funds having to stand by and watch as their retirement savings are spent on straight-out political advertising or dubious sponsorships of union congresses.”

But Canstar was full of praise for the super seven, saying they represented outstanding value.

“These 5-Star recipients have demonstrated robust net investment returns across the previous five years, as well as competitive product offerings, specifically when it comes to financial advice, tools and education, member access, contribution methods and beneficiary options,” it said.

A spokesperson for Canstar said 63 funds of all types were assessed for the list, including public offer funds, whether they were industry, retail, public sector or profit for members.

Is your superannuation invested by a for-profit manager or an industry fund? Would you swap your super money between funds to achieve a better return?

Financial disclaimer: All content on YourLifeChoices website is of a general nature and has been prepared without taking into account your objectives, financial situation or needs. It has been prepared with due care but no guarantees are provided for the ongoing accuracy or relevance. Before making a decision based on this information, you should consider its appropriateness in regard to your own circumstances. You should seek professional advice from a financial planner, lawyer or tax agent in relation to any aspects that affect your financial and legal circumstances. 

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Written by Olga Galacho

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