ISA released a ratings report that shows industry super funds outperformed bank-owned retail funds, by more than 2 per cent in some cases.
According to the February SuperRatings numbers, industry super funds in the SR 50Balanced Option have consistently outperformed bank-owned retail super funds through the decade – by 2.02 per cent over three years, 2.16 per cent over five years, 2.05 per cent over 7 years and 2.21 per cent over 10 years.
The results were released on the back of a new ad by ISA that likened the big four banks to foxes raiding a hen house.
Minister for Revenue and Financial Services Kelly O’Dwyer was quick to deny suggestions that changes to the default super model were in the pipeline.
“This campaign is jumping at shadows,” Ms O’Dwyer said. “The basis of the campaign is bizarre.”
“But the main problem is, this is not how members’ superannuation savings should be being spent.
“It is beholden on industry super funds, which bankroll ISA using members’ retirement savings, to disclose to their members how much they have contributed to this latest round of self-indulgent scare campaigning and lobbying.”
ISA’s chief executive David Whiteley remains adamant that banks were lobbying to dismantle the current industry super fund model.
“The banks are quietly pressuring federal politicians to remove the laws that protect Australians who save through workplace default funds. If they succeed, the super savings of millions of Australians could be at risk,” Mr Whiteley said.
“The trustworthy and high-performing industry super fund model has consistently outperformed bank-owned funds for two decades.
“There is no reason to dismantle the system that works best for members. If anything, more needs to be done to look into the chronic underperformance of bank-owned super.”
And the Union Super Funds aren’t pressuring Labor to keep them in their protected position? Pot. Kettle. Black. As soon as MySuper came in, all MySuper accounts should have been eligible to be selected as a default fund. The fact that it wasnt is due to pressure applied by Unions and Union Super Funds. Now that FWA has broken the shackles of Labor domination in the penalty rates decision, perhaps they should be eliminating any restrictions on default super and Choice of Fund. It is unfathomable that people are still forced to contribute to funds selected for them by a union given the legislation has been in since 2005. There is obviously no conflict in the CFMEU and other unions requiring that all members must contribute to CBUS, not when all the Member Directors are union party hacks with no experience or qualifications in the main, except for the odd Cert IV in Unionism (I kid u not!!)
Well said Jimmy, pity the ‘like’ button doesn’t work on this site