Lifting the Lid on Superannuation – $3.9 billion per annum in under-performance
The Productivity Commission recently released a draft report on the Superannuation Industry and there were some really interesting findings we thought we’d share
- 10 million accounts – a third of all superannuation accounts are unintended multiple accounts resulting from people changing jobs and not specifying the superannuation fund they want contributions to go to.
- A significant number of products (including some default choice accounts) underperform markedly, even after adjusting for differences in investment strategy. Most (but not all) underperforming products are in the retail segment
- Not all members get value out of insurance in super. Many see their retirement balances eroded – often by over $50,000 – by duplicate or unsuitable policies.
- Fees remain a significant drain on net returns
Fixing these problems could benefit members to the tune of $3.9 billion dollars each year.
Even a 55 year old today could gain $61,000 by the time they retire. The balance of a person who enters the job market today could increase by $407,000 when they retire in 2064.
Most people ignore their superannuation and particularly so when they are young but its your money. We recommend you get in control and make it work for you.
If you need a hand getting in control of your Super, contact Gregg Watts at our wholly owned wealth creation business Shape Advisers on 94271777.