After a two-year review, the Productivity Commission has released its draft report on the superannuation industry.
According to the report, the two main problems affecting the industry are costly multiple accounts caused by people changing jobs, and the poor investment performance of some funds.
The Commission has made the following recommendations to address these problems:
- Members should be put into a default fund when they first start working and stay in that fund unless they elect to change.
- Members should be able to choose from a list of 10 top-performing funds identified by an independent panel.
- Underperforming funds should be merged with better-performing funds and board members should have appropriate skills.
These are proposals only that will be considered and debated by industry representatives and regulators in coming months. We will let you know when more information is available.
In the meantime, with terms like ‘super rip-off’ and ‘poor performance’ appearing in the media coverage of the report, we thought it would be useful and timely to present some facts to demonstrate that First State Super is a strong, reputable fund committed to acting in the best interests of members.
We are one of Australia’s largest industry funds providing superannuation, advice and retirement solutions to those who teach, nurse, care, respond and help others in our communities.
Our returns have been competitive over a long period of time. The table shows the returns and ranking for the two default investment options in which over 85% of our members are invested.
|1 year||3 years||5 years||7 years||10 years|
Source: SuperRatings Fund Crediting Rate Survey April 2018.
Our fees have also been among the lowest in the industry. Here is a comparison of the total annual fees charged for a selection of MySuper options^1.
|First State Super||AMP Signature Super||Australian Super||BT Super for Life||REST||Hesta||Hostplus||MLC Business Super||Cbus||QSuper|
Source: Chant West Super Fund Fee Survey March 2018
Compare your options
You don’t just have to take our word for it. Independent research company Chant West allows you to compare key features of over 200 different super and pension funds on an ‘apples with apples’ basis. You'll receive a detailed report comparing First State Super to the other funds you select.