New data reveals top performing super funds
Your superannuation return for the last financial year is being prepared, and you may notice it’s higher than usual. But how does your superfund stack up against others? The answer could be the difference between thousands of dollars.
It’s been a bountiful year for Australia’s superannuation fund members, with the average balanced fund returning 9.2% after tax.
*Includes public offer funds only.
But it’s where your superfund invests their money that boosts the returns.
“We’re investing in real assets. We’re investing in investments such as airports, toll-roads, railway lines,” said HostPlus chief executive officer David Elia.
It’s important to know if your fund is keeping up. If not, it could be costing you thousands.
For example, take a 22 year old entering the workforce on a salary of $45,000.
Say they change jobs 3 times – raising their salary in their 40s above $100,000 a year.
If they work until age 70, with a typical super fund return, they’ll end up with $807,000.
However, if their fund returns just 1 percent more – each and every year – the final balance will be $1.02 million – $213,000 extra.
But one-year returns are volatile. Long-term returns give a better guide.
“You want to make sure your provider has performed well against the benchmark across the long-term, medium-term and short-term,” said Kirby Rappell from SuperRatings.
So if you’re looking for a better option for your super, this may be a great time!