Industry Super Australia has expanded the comparisons in its ‘Compare the Pair’ campaign, a move which it says hands more power to consumers.
The updated ‘Compare the Pair’ campaign – comparing performance in industry versus retail funds – now includes comparisons over 3 and 15 years, in addition to the existing 10 years.
“The changes mean that consumers are now able to see super fund performance over additional time periods – including that of some bank-owned retail funds with only a limited performance history,” said Industry Super Australia (ISA).
According to ISA, using SuperRatings data and based on a number of assumptions, someone with a balance of $74,600 switching to an industry super fund from a retail fund three years ago would now have $5,268 extra in super, $20,871 if they’d switched 10 years ago with the same balance and $54,821 for 15 years. This is based on the average main balanced investment option of the average industry fund versus the average retail fund, after fees and costs.
Though ISA does warn that past performance is not an indicator of future performance.
ISA chief executive David Whiteley said that superannuation is a long term investment, but consumers should be able to easily compare super funds over short and medium terms to test their performance.
“We know that many people don’t spend much time thinking about their super. The Compare the Pair campaign helps people do the maths simply and quickly,” he said.
“By putting members’ interests first, Industry Super Funds deliver more each year. And with compounding interest that can make a huge difference to a member’s income during retirement.”
Compare the Pair – it’s not too late ($50,000 starting balance)
Compare the Pair – there’s still time to move ($74,600 starting balance)
The updated ads started airing nationally on 20 March 2018.