Super funds recover COVID-19 losses

26 June 2020

The average balanced investment superannuation fund has returned a flat for the 2019/20 financial year, managing to recoup losses caused by the COVID-19 pandemic which wiped nearly 15% from the average portfolio, according to the Association of Superannuation Funds of Australia (ASFA). 

ASFA chief executive, Dr Martin Fahy, said super funds’ diversified investment strategies continued to deliver for the benefit of members, amid hugely difficult global conditions. 

“It’s a remarkable feat for funds to reverse the significant losses anticipated in March and April as the Australian share market fell 37% from peak to trough,” he said. 

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ASFA noted that superannuation had also benefitted members in other ways during the financial year including:  

Around 2.5 million Australians will have benefitted from early release payments, averaging around $7,500 each and totalling around $18.5 billion; 

Funds paid out around $8 billion in insurance claims for death and disability; and 

Funds other than self-managed super funds paid out around $44 billion in lump sum payments and $42 billion in pension payments over the year. 

ASFA also said that compared with other countries’ pension funds, Australian super funds topped the charts. 

Australia dominated returns over the five years to 30 December, 2019, at 6.3%, and came second for 10-year returns at 5.8%. 

In comparison, US pension returns were at 2.1% for five years and 3% for 10 years. 

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ASFA Martin Fahy said Super Funds have paid out $8 billion in Death Benefits in the last year but I ask who was it paid to? The nominated beneficiaries? Not necessarily! My son died and a girl who lived with him off and on for less than 2 yrs was given $213,000 by REST Trustee contrary to his nomination and Will. No marriage, no engagement, no registered relationship, no children biological or step, no shared bank accounts or bills or mortgage, no money going between bank accounts. She received Centrelink and attended Tafe. Check A Current Affair 30th June, a similar scenario from CBus. A woman given a fund members Super after living with him for 14 months when his adult children were nominated. Go back a few years and the Military Super gave a woman who had lived with a man for 9 months his Super and DB even tho he had his children nominated. Is this what you all want? We are all hearing about this now. It has gone on since super started. How many families have to be financially ruined, like mine, before we stop this insidious control of the worker's money. Scrap Superannuation. Make it voluntary. Take out ur insurance elsewhere e.g..Real Insurance your money gies to the nomination, no Trustee, no one else decides and no tax even for non dependents. I now have to pay 30% tax or $50,000 on the half of my son's super the Trustee allocated to me. That's after the $109,000 it cost me for his Estate while the Trustee of REST took 12 months to come to that decision. Are we living in the 17th century?

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