On 9 January 2014, Christopher Russell & Jane Harper, in The Advertiser, page 27 [also appeared in the Courier Mail and Herald-Sun] reported –
Only one of Australia’s biggest 200 superannuation funds has managed to deliver returns averaging more than 10 per cent a year over the past decade. The Goldman Sachs & JB Were Superannuation Fund – an in-house scheme for employees of the financial institutions – brought in an average 10.5 per cent a year. The ranking was reported yesterday by the Australian Prudential Regulation Authority in data up to the end of the 2012-13 financial year (30 June). APRA found the total worth of the superannuation pool grew to $1.62 trillion. In 2012-13, contributions swelled the pool by $115.3 billion, with employers contributing $77.5 billion and members contributing $36.5 billion.
It is good to see that members are contributing 47% of the total contributed to super – an encouraging sign!
However there is a bigger issue at hand – how much is needed to fund your retirement? – On 9 January 2014 | Chanticleer, The Australian Financial Review, page 40 wrote –
The mind-boggling numbers in the latest super statistics from the prudential regulator could easily distract attention from our demographic time bomb. Total super assets have grown to $1.6 trillion and there are equally staggering movements in and out of funds. Contributions in the year to June 2013 were $115 billion and the benefit payments jumped to $75 billion. But scratch a bit deeper and you will understand why there are widespread concerns among policymakers and sovereign credit rating agencies about the sustainability of the Australia’s long-term public finances. Average account balances are woefully inadequate to fund a retirement. Millions of Australians are headed for pension support in retirement.
In addition to this, 40% of Australians don’t have a plan of what age they aim to retire and if we are living longer we need to shake off the procrastination in Australia and not be complacent! For many people, a self-managed super fund (SMSF) is a way to take more control of your retirement wealth plan – could SMSF be right for you?
Interested to know what self-managed super (SMSF) is all about, how to get setup FREE and if it is for you? Come to a FREE seminar with bonuses, run every month – Self Managed Super Fund Roadmap (all you need to know) for the next monthly event, see 1 SMSF – FREE Seminars or call us 0407 361 596