SUPER SLASHED

Written on the 16 February 2010

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.”


Latest News

CONSUMERS PESSIMISTIC ENTERING 2017

CONSUMER confidence remains at its weakest point since April 2016, according to the latest Westpac Melbourne Institut...

WESFARMERS' COAL BUSINESS ON FIRE

WESFARMERS (ASX: WES) has lifted its first-half profit guidance due to surging coal prices and higher than expected c...

SIXTH CONSECUTIVE RECORD PROFIT FOR AP EAGERS

AP EAGERS (ASX: APE) will beat guidance with its sixth-consecutive record profit when it reports its full year result...

WINDSCREEN COMPANY SMASHED WITH BIG FINE FOR UNDERPAYING WORKERS

AN Adelaide car windscreens company and its director have been penalised almost $85,000 after exploiting seven employ...

Related News

CONSUMERS PESSIMISTIC ENTERING 2017

CONSUMER confidence remains at its weakest point since April 2016, according to the latest Westpac Melbourne Institut...

RISE OF STARTUP SUPPORT PROGRAMS NOT AS ROSY AT IT SEEMS

ENTREPRENEURIAL cultivation companies in Australia are appearing quickly, but questions have been raised about whe...

SMES TAKE RETAIL MARKET SHARE AS CONSUMERS CHOOSE PERSONALISATION

IN a battle for the hearts and wallets of Australian consumers, it appears that small and medium retail businesses...

KNOWLEDGE WORKERS AMONG MOST SOUGHT AFTER IN 2017

BUSINESSES searching for efficiencies and improved systems are in search of knowledge workers early this year, say...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter