New APRA data shows a wave of Australians shifting their retirement savings into consistently high-performing industry super funds.
The latest data reveals the growth in industry fund assets (eclipsing the retail sector last quarter) is partly caused by a surge in benefit inflows which have leapt around 250 per cent compared to just a few years ago.
In the year to June 2018, industry super funds received inward benefit transfers of $32.5 billion compared to $12.5 billion just three years ago.
The sheer scale of these transfers is significant – last year they exceeded the total employer Superannuation Guarantee contributions received by the six million industry super fund members.
After allowing for outflows, net benefit transfers were $11.3 billion last year compared to regular net outward transfers in preceding years.
The new APRA data also confirms superior investment performance is powering industry funds’ growth with $52.8 billion in net returns earned for members in the year to June 2018 – a net return of 9.8 per cent which was 2.4 per cent greater than the retail sector.
The same 2.4 per cent net outperformance was evident over the past five years to June 2018 as well.
Industry Super Australia’s incoming chief executive, Bernie Dean, says: “The continued outperformance shows it is never too late to consider an industry fund”.
“It is a privilege and profound responsibility for Industry Funds to be custodians of the retirement savings for so many Australians”.
“Industry Super Funds remain wholly committed to putting members first and finding ways to deliver them the best possible retirement,” said Dean.
The new APRA data is available here.
Media contact: Phil Davey 0414 867 188
Industry Super Australia provides policy, research and advocacy on behalf of 16 not-for-profit Industry SuperFunds who are the custodians of the retirement savings of six million Australians.
Past performance is not a reliable indicator of future performance and should never be the sole factor considered when selecting a fund. Industry Super Australia Pty Ltd ABN 72 158 563 270, Corporate Authorised Representative No. 426006 of Industry Fund Services Ltd ABN 54 007 016 195 AFSL 232514