Industry super funds may appear more attractive to Australian investors following news they could deliver $115,000 more in retirement dollars to its members than retail master trusts.
According to the latest survey from SuperRatings, Australians could be about 25 per cent better off in an industry super fund, even if there was no investment out-performance.
This was the 12th survey in a row where modelling from SuperRatings showed that on average, industry super fund members received more dollars in their accounts after fees and taxes.
“Industry super funds and retails master trusts are the two main options now that Australians have Choice of Fund environment. And there can be no doubt about the superiority of the industry super model for most members,” Industry Super Network (ISN) executive manager David Whiteley said.
“Part of the reason why members can be better off in an industry super fund, is they currently have lower average fees and don’t pay commissions to financial advisers.”
The survey cover ed 35 super funds, representing more than $156 billion in funds under management and 7.5 million member accounts.
During a 40-year working life, this could mean having more than $115,000 at retirement measured, in today’s dollars (or more than $315,000 in future value, taking into account the effects of inflation).
The SuperRatings’ modelling used average existing fee levels and projections over 40 years, to give an indication of the potential impact of fee differentials between the two sectors.
SuperRatings was commissioned to test the average net benefit to member, on behalf of the ISN.
