Australian superannuation is still a good investment but picking the right fund can make a big difference.
In the 2013-14 financial year, the median balanced option delivered a 12.7% return, according to industry analysts SuperRatings.
Compare that to Telstra Super which was the best performing superannuation fund with a 15.8% return. That would have delivered $3,000 more than the median return.
Intrust Super was the second best performing fund with 14% and UniSuper next at 13.9%.
The median balanced option return of 12.7% for the 2013-14 Financial Year was the seventh highest return on record since the introduction of compulsory superannuation in 1992.
The return wasn’t as good as the previous year at 14.7%.
However, it does mean Australian superannuation funds have delivered their second consecutive year of double digit growth for members and returned more than 29% over the past two years.
SuperRatings founder Jeff Bresnahan says Australian funds have returned 7.2% a year over the 22 years since the introduction of compulsory superannuation.
“Despite all the peaks and troughs we’ve seen since 1992, superannuation funds have generally succeeded in providing returns to members of over 3.5% above inflation,” he says.
“While superannuation funds should be commended for this great result, there remains work to be done to ensure members have the best possible chance to achieve their retirement goals.
“There is increasing recognition across the industry that some members have been faced with poorer outcomes due to the timing of their retirement or poorly performing products.
The top 20 funds, according to SuperRatings:
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