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In good hands

Why it's important to think about super

Around 75% of Australian workers don't choose their super fund or simply go with the fund their employer has chosen as a default fund. Default funds are often Industry SuperFunds, which are run to benefit members and have strong performance history.

The banks are lobbying the government for it to become easier for employers to adopt a bank-owned super fund as a default fund, even if it doesn't have the same strong performance history as Industry SuperFunds.


 

5 Things you may not know about retail super funds

  1. The big banks are behind lots of the big retail super funds. For example: BT Super is owned by Westpac, MLC is owned by Nab, Colonial First State is owned by Commonwealth Bank, OnePath is owned by ANZ Bank.
  2. Banks run their super funds to generate profits which are used to pay dividends to shareholders. In 2013/14 this amounted to $2.5 Billion for the wealth management sections of the major banks, which includes their superannuation funds1.
  3. Over 80% of financial planners are associated with a product manufacturer, including the big banks, and can earn sales incentives for recommending the banks' products to you2
  4. Total commissions paid to financial advisers from retail super funds in 2012/13 was an estimated $2.6 Billion3.
  5. Over the last 10 years the average retail fund has delivered around $16,000 less to members than the average Industry SuperFund4.

Banks own superfunds

Consider a fund's PDS and your objectives, financial situation and needs, which are not accounted for in this information before making an investment decision.

  1. IBISWorld Company Reports, Balance Date 30 September 2014.
  2. ASIC (2009) Submission to PJC Inquiry into Financial Products and Services, August 2009, p 110.
  3. Rainmaker Information (2011) Commissions Revenue Report 2013, prepared for Industry Super Australia, March 2013.
  4. Past performance is not a reliable indicator of future performance. Assumes starting balance of $50,000 and initial salary of $50,000. Comparisons modelled by SuperRatings, commissioned by ISA. Modelled outcome shows 10 year average difference in net benefit of the main balanced options of 15 Industry SuperFunds and the 79 retail funds tracked by SuperRatings, with a 10 year performance history, taking into account historical earnings and fees – excluding contribution, entry, exit and additional advisor fees – of main balanced options. Outcomes vary between individual funds. Modelling as at 30 June 2014. See www.industrysuper.com/assumptions for more details about modelling calculations and assumptions. Consider a fund’s Product Disclosure Statement (PDS) and your personal financial situation, needs or objectives, which are not accounted for in this information, before making an investment decision. ISA Pty Ltd ABN 72 158 563 270 Corporate Authorised Representative No. 426006 of Industry Fund Services Ltd ABN 54 007 016 195 AFSL 232514.