Industry superannuation funds are continuing to outperform bank-owned alternatives, new data from SuperRatings reveals.
Over the last 10 years industry funds have provided an average rolling return of 7.18 per cent, compared with a 5.21 per cent earned by bank-owned super funds.
The SuperRatings data also found that industry super funds outperformed bank-owned funds by an average of 1.87 per cent over the 12 months to 31 August.
A spokesperson for Industry Super Australia (ISA) said the performances of industry funds over the last decade highlighted the need for a default super safety net.
“With four in five Australians not choosing their own super fund and the Government freeze on increases to the super guarantee, the data reinforces the need for a default super safety net,” the spokesperson said.
“The safety net is administered by the Fair Work Commission and short-lists the best performing super funds to become employer defaults.
“The banks are trying to scrap the default super safety net so they can leverage their business banking relationships and cross-sell employee default funds to employers.
“ISA has called for an inquiry into the cross-selling of employee default super funds by banks leveraging their business banking relationships.”
