Industry super fund members are around $2,000 better off a year compared to being in a retail super fund, according to the latest ‘Compare the Pair’ figures.
Updated modelling, conducted by SuperRatings, for Industry Super Australia’s Compare the Pair campaign finds someone earning an average salary would have a super balance $20,871 higher over the last 10 years if they were in a industry fund instead of a retail super fund.
Industry Super Australia says that industry funds consistently out-perform retail super funds, “which are generally owned by the big banks”. SuperRatings models the average performance of the main balanced investment option of industry funds against the average performance of retail funds, over the last ten years. The latest modelling shows that on average the 16 industry super funds had higher after-fee returns than the average of the 77 retail funds modelled.
ISA says the Compare the Pair figures will not be affected by the changes ASIC made to super fund fee disclosures, which ISA has been campaigning against. This is because Compare the Pair is based on returns net of fees and costs.
“Using a net benefit, or after fee calculation, helps demonstrate to consumers how hard their fund is working for them after everything is taken into account,” said Industry Super Australia’s director of public affairs Matt Linden.