SUPER SLASHED

SUPER SLASHED

SUPERANNUATION assets were slashed by $66.4 billion last year, according to a report released today by the Australian Prudential Regulation Authority (APRA).

The Annual Superannuation Bulletin reports the nation’s total superannuation assets fell by 5.8 per cent last financial year, with the average rate of return (ROR) falling 11.7 per cent for industry funds.

For the last 10 years the average ROR was 3.4 per cent per annum.

The lion’s share of contributions was $76.9 billion to large funds, followed by $28.2 billion and $23.9 billion to retail and industry funds respectively.

The value of Australia’s superannuation assets now stands at $1.07 trillion until the next valuation.

While the ROR for industry super funds fell 11.7 per cent in FY09, the Industry Super Network (ISN) says their average positive real returns over the decade demonstrate their long term advantage.

While inflation for the decade averaged at 3.2 per cent, retail funds lagged at 2.4 per cent and industry funds recorded 4 per cent.

ISN chief executive David Whiteley, says APRA’s results show an urgent need for the Federal Government reform.

"Members in retail funds will be disappointed to know that their investment didn't even keep pace with inflation,” he says.

“$10,000 invested in an average industry fund in 2000 would be worth $14,856 by June 2009, whereas the same amount invested in a retail fund would be worth only $12,662.

"Over a lifetime a retail super fund member could be short changed almost $80,000 on their super payout compared to an industry fund member.”

Get our daily business news

Sign up to our free email news updates.

 
Finexia’s Childcare Income Fund secures ‘very strong’ rating from Foresight Analytics & Ratings
Partner Content
Private credit specialist Finexia Financial Group (ASX: FNX) has secured a “very...
Finexia
Advertisement

Related Stories

Just Wines acquires collapsed spirit subscription service Liquor Loot for $1.2m

Just Wines acquires collapsed spirit subscription service Liquor Loot for $1.2m

Only eight months since rescuing non-alcoholic specialty store Sans...

UniSuper pumps $623m into Macquarie green energy and climate fund

UniSuper pumps $623m into Macquarie green energy and climate fund

One of the nation’s largest super funds, UniSuper, has commit...

Founder-led Solution Underwriting acquired by UK insurance provider CFC

Founder-led Solution Underwriting acquired by UK insurance provider CFC

After 14 years in business and with 55 staff spread across four Aus...

The Star Gold Coast CEO resigns after just six months in the role

The Star Gold Coast CEO resigns after just six months in the role

The exodus of The Star Entertainment Group's (ASX: SGR) new bre...