Over the last 10 years the average Industry SuperFund has delivered around $15,000 more to their members than the average retail (bank owned) fund.* See the difference yourself.
But that’s not where the differences end.
Industry SuperFunds have never paid commissions or incentives to staff or any financial planners or advisers. Despite recent rule changes banning commissions, some types of commissions are still allowed; meaning some financial planners may continue to receive ongoing commissions from clients, even under the changes. If a financial planner has ever recommended a retail or bank owned super fund to you, you should ask them if they are still earning commissions from you and whether you would be better off shifting into a commission free arrangement.
Not sure what the difference between an Industry SuperFund and a retail (bank owned) super fund is? Click here.
Compare the Pair - It's not too late
GREG: I can’t believe you’ve never done anything about it.
DAVE: Whaddya mean?
GREG: After all this time.
DAVE: Oh… I’ve thought about it.
GREG: You’ve thought about it?
Voiceover: Same age. Same income. Same starting balance.
GREG: …you’ve had years to think about it…
Voiceover: Ten years ago, Greg switched to an Industry Super Fund. Dave stayed with a retail super fund. Compare the Pair.
Disclaimer: Past Performance is not a reliable indicator of future performance.
Compare the Pair - You've still got time
SUE: I told you it was going nowhere.
JILL: ….I thought things would work out.
SUE: ...you should have left years ago.
Voiceover: Same age. Same income. Same starting balance. Ten years ago, Sue switched to an Industry Super Fund. Jill stayed with a retail super fund. Compare the Pair.
SUE: You’ve still got time.
Disclaimer: Past performance is not a reliable indicator of future performance.
Another important difference is that Industry SuperFunds are run only to profit members, while banks and insurance companies use their super funds to generate corporate profits, which are returned as dividends to shareholders, not members. Think about that next time you hear that a bank has made record profits.
Some retail or bank owned super funds are promoting “low fee” or “no fee” super products these days. While it is important to avoid paying unnecessarily high fees on your super, it is even more important to look at net benefit. Net benefit is a fancy term for investment performance minus fees and taxes, so better net benefit means you will have more money in your super account. And that’s what’s really important.
Compare the net benefit of the average Industry SuperFund against the average retail super fund over the past 10 years here to see the difference for yourself.
* 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 75 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 2016. 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.