New SuperRatings data highlighting the outperformance of industry superannuation funds over the long term shows the representative trustee governance system is a superior model for individual workers and national savings, according to the Industry Super Network (ISN).
The SuperRatings SR50 Balanced Index showed industry super funds outperforming retail funds over one, three, five, seven and 10 years, with the 10-year figure being 6.3 per cent per annum against 4.4 per cent, according to the ISN.
"A higher national savings pool will reduce the burden on future taxpayers. Government policy must be orientated to maximizing the effectiveness of the compulsory super system logically measured by long-term net returns," ISN chief executive David Whiteley said.
ISN modelling of Australian Prudential Regulation Authority data has shown that over a 15-year period to 30 June 2011, if the retail super fund sector had earned industry super fund average returns, Australian retirement savings would currently be $75 billion higher, the ISN stated.
