High relative operating costs experienced by SMSFs with small balances is indicative of a transition period, and not an ongoing situation, according to the June 2016 Class SMSF Benchmark Report. “Recent industry commentary has suggested that self managed super funds with smaller balances are not cost effective, citing that based on ATO data, funds with… Continue reading High cost, low balance SMSFs are in ‘transition’ period: report finds
New research has found retail super funds are charging significant fee premiums for the same investment options compared to non-for-profit super funds.
Industry super funds have returned an average of 2% per year above ‘bank-owned’ super funds, according to Industry Super Australia, building the case for better disclosure of fees and investment returns.
Retail superannuation fund members have been “gouged” by up to $7.1 billion in above-market costs over the last decade, Industry Super Australia has claimed.
Industry Super Australia says ASIC’s recently released disclosure guidelines leaves consumers in the dark about fees charged by some superannuation funds.
ASIC has updated its guidance on the requirements for superannuation funds to disclose fees and costs. “These measures will assist trustees and responsible entities in ensuring that the fees and costs disclosed to investors are accurate and that fees and costs are disclosed more consistently across the industry,” said ASIC. “Accurate and consistent fees and costs… Continue reading ASIC updates super fund fee disclosure guidance
Reducing the number of superannuation funds could increase the retirement savings of average Australians by thousands of dollars, claims the Financial Services Council.
New research by SuperRatings shows that low fees do not mean a superannuation fund is good value. SuperRatings reviewed all major superannuation funds with a 10 year performance history and found that “low fees have little correlation with fund performance or retirement outcomes.”
Analysis by research firm Rice Warner suggests that the shift to pension accounts as the baby-boomers retire, and increased consolidation of superannuation accounts, will lead to higher superannuation fees. The fees charged by superannuation funds was a focus of the Financial System Inquiry. The final report recommended that if there was not a significant improvement… Continue reading Retirement and consolidation will lead to higher super fees
The Australian superannuation system has been described as “middle of the pack” in terms of investment returns and fees in an international comparison conducted by Deloitte Access Economics. Titled Financial performance of Australia’s superannuation products, the report was recently released by the Financial Services Council. Superannuation Returns According to the report “Australia’s system appears to… Continue reading Superannuation system “middle of the pack” internationally