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

DOWNER EDI GRABS MORE THAN 50 PER CENT STAKE IN HOSTILE TAKEOVER TARGET SPOTLESS

DOWNER EDI Limited (ASX: DOW) now holds more than 50 per cent of Spotless Group Holdings Limited's (ASX: SPO) sha...

ACCODEX AIMS TO RAISE $5 MILLION CAPITAL, AWARD FOR CEO A CHERRY ON TOP

ACCOUNTANT Chris Hooper has never been one to shy away from voicing his opinion when it comes to the state of his ...

AVEO GROUP TO BUY BACK SHARES FOLLOWING MEDIA INVESTIGATION

FOLLOWING last night's Four Corners report which revealed accusations against Aveo Group (ASX: AOG) of financi...

STRUGGLING TEN NETWORK IS 'CASH POSITIVE' AND CAN BE SAVED, ADMINISTRATOR SAYS

THE ADMINISTRATORS of the Ten Network say the struggling broadcaster has cash to continue operating and have also ind...

Related News

DOWNER EDI GRABS MORE THAN 50 PER CENT STAKE IN HOSTILE TAKEOVER TARGET SPOTLESS

DOWNER EDI Limited (ASX: DOW) now holds more than 50 per cent of Spotless Group Holdings Limited's (ASX: SPO) sha...

STRUGGLING TEN NETWORK IS 'CASH POSITIVE' AND CAN BE SAVED, ADMINISTRATOR SAYS

THE ADMINISTRATORS of the Ten Network say the struggling broadcaster has cash to continue operating and have also ind...

METCASH NET PROFIT FALLS 20 PER CENT, ANNOUNCES CEO WILL STEP DOWN IN 2018

FOOD and grocery giant Metcash has announced its full year net profit has fallen more than 20 per cent and its CEO Ia...

SHARE PRICE PLUNGE FOR RETIREMENT VILLAGE OPERATOR AHEAD OF FOUR CORNERS INVESTIGATION

A RETIREMENT village operator which has been accused of charging excessive fees through complex contracts has respond...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter