Bank staff can count themselves lucky they’re members of ‘in-house’ bank corporate super funds rather than the retail funds they have to sell to the public.
An analysis of the latest official data shows that over a ten-year period the Commonwealth Bank’s not-for-profit corporate staff fund outperformed by 2.8% per year on average one of the largest retail super funds it recommends to customers.
Similarly, ANZ’s not-for-profit staff super fund outperformed one of its retail super products for the general public by 2% per year on average.
Industry Super Australia chief executive David Whiteley said: “These differences will be of deep concern to policy makers and the general public. Clearly these institutions have the capacity to deliver better returns to members of the public, but their need to deliver profits to shareholders may be a stumbling block”.
According to a recent Essential Research poll, 70% of Australians believe all superannuation funds should be run on a not-for-profit basis; only 6% disagree. This latest data analysis reinforces why 58% of Australians who, in the same poll, said more bank involvement in superannuation could mean less to retire on.
“The banks should explain how it is the super funds for themselves can outperform the super funds they sell to the public so considerably”.
“The three million members of these public offer funds deserve to know whether the banks are putting the interests of shareholders before fund members,” said Whiteley.
|Bank Staff Funds (10 yr. average Rate of Return p.a)*||ANZ Australian Staff Superannuation Scheme||Commonwealth Bank Group Super||National Australia Bank Group Superannuation Fund A|
|Bank Public Offer Funds (10 yr. average Rate of Return p.a)*||OnePath Masterfund||Colonial First State FirstChoice Superannuation Trust||The Universal Super Scheme|
|Bank Staff Funds Out-performance and illustrative $ impact based on respective average public offer fund member balance||2.0% (or $700 extra per average individual account, p.a.)||2.8% (or $2,380 extra per average individual account, p.a.)||1.5% (or $675 extra per average individual account, p.a.)|
Source: Industry Super Australia analysis of APRA’s Annual Fund-level Superannuation Statistics, June 2016 (released February 2017).While based on official data, this Industry Super analysis is not endorsed by APRA.
David Whiteley is available for interview. Media contact: Phil Davey 0414 867 188
Industry Super Australia provides policy, research and advocacy on behalf of 15 not-for-profit Industry SuperFunds who are the custodians of the retirement savings of five million Australians.