The long-term average returns delivered by retail super funds are reducing the overall aggregate performance of the Australian super system, according to Industry Super Australia.
The long-term average returns of industry super funds over three-, five-, seven- and 10-year periods to 31 March 2015 outperformed those of the bank-owned super funds, the lobby group said.
“Not only has the bank-owned sector underperformed the industry super fund sector over the last decade, it has dragged down the aggregate performance of Australia’s super system to below that of the OECD average,” said Industry Super Australia chief executive, David Whiteley.
Mr Whiteley said the data reinforces once again that Australians’ retirement savings are best protected by a strong safety net.
“Eight in 10 Australians do not choose their own super fund and rely on their employer to place them in a high-performing fund selected in a merit-based process overseen by the Fair Work Commission,” he said.
Mr Whiteley said the banks oppose the super safety net and are lobbying the government to scrap it so they can increase their market share and profits.
“This commercially-driven approach is profoundly at odds with the objective of our super system to maximise members' retirement savings,” he said.
“It also follows the bank’s unsuccessful push in 2014 to scrap consumer protection for people seeking financial advice.”
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