The superannuation investment returns for 2014 are in – and the good news is that your retirement nest egg has probably grown by about eight per cent.
While funds did not see the astronomical double-figure returns of 2013, they nevertheless returned a healthy 8.1 per cent on average, with only one fund hitting double figures.
That 8.1 per cent does not take into account contributions. Even if you haven’t been working, your super will still have grown by that much. If you have been working, it will have grown by more.
The latest Super Ratings report shows that industry funds did particularly well, posting average returns of 8.3 per cent, compared to 7.75 per cent for bank-owned retail funds.
The difference on 10-year returns was even more marked, with industry funds posting average annual growth of 6.75 per cent compared to retail funds’ 5.09 per cent.
UniSuper, the industry fund focused on employees in the tertiary education sector, posted the highest return of all balanced funds offered in the superannuation market last year.
UniSuper’s balanced fund option returned 10 per cent on the back of its strongly performing asset management teams in property and international shares.
Seven of the 10 best-performed balanced fund products were offered by industry funds, according to the Super Ratings survey.
An ‘emphatic story’ for industry funds
ISA deputy chief executive Robbie Campo said the latest performance returns demonstrated the value offered by industry funds in the superannuation market.
“These results tell an emphatic story, that if your retirement savings are with an industry super fund, they are in good hands,” she said.
“It has been consistently the case that industry super funds have recorded better median results than those from the big banks according to this independent research.”
Ms Campo said the outperformance by industry funds highlighted the value of the existing system to members.
“The results shine a light on just how vital the default superannuation safety net is – a safeguard for the retirement savings of eight out of ten Australians who don’t select their own fund,” she said.
“The outperformance of industry super funds it is a clear sore point for bank-owned funds, who perennially respond by using their weight to lobby relentlessly to weaken the safety net and remove any performance filter.”
While funds did not see the astronomical double-figure returns of 2013, they nevertheless returned a healthy 8.1 per cent on average, with only one fund hitting double figures.
That 8.1 per cent does not take into account contributions. Even if you haven’t been working, your super will still have grown by that much. If you have been working, it will have grown by more.
The latest Super Ratings report shows that industry funds did particularly well, posting average returns of 8.3 per cent, compared to 7.75 per cent for bank-owned retail funds.
The difference on 10-year returns was even more marked, with industry funds posting average annual growth of 6.75 per cent compared to retail funds’ 5.09 per cent.
UniSuper, the industry fund focused on employees in the tertiary education sector, posted the highest return of all balanced funds offered in the superannuation market last year.
UniSuper’s balanced fund option returned 10 per cent on the back of its strongly performing asset management teams in property and international shares.
Seven of the 10 best-performed balanced fund products were offered by industry funds, according to the Super Ratings survey.
An ‘emphatic story’ for industry funds
ISA deputy chief executive Robbie Campo said the latest performance returns demonstrated the value offered by industry funds in the superannuation market.
“These results tell an emphatic story, that if your retirement savings are with an industry super fund, they are in good hands,” she said.
“It has been consistently the case that industry super funds have recorded better median results than those from the big banks according to this independent research.”
Ms Campo said the outperformance by industry funds highlighted the value of the existing system to members.
“The results shine a light on just how vital the default superannuation safety net is – a safeguard for the retirement savings of eight out of ten Australians who don’t select their own fund,” she said.
“The outperformance of industry super funds it is a clear sore point for bank-owned funds, who perennially respond by using their weight to lobby relentlessly to weaken the safety net and remove any performance filter.”
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