About industry super funds
Industry super funds are widely recognised as market leaders in terms of net benefit to members based on:
- Economies of scale
- Run only to profit members
- No sales commissions
- Sound investment strategies
For more information visit www.industrysuper.com
Industry funds vs retail funds
According to independent market analyst, SuperRatings, Australians could be almost 25 per cent better off in an industry super fund, based on existing fee structures, even if there was no investment out-performance. Over a 40-year working life, this could mean having $120,000 more at retirement measured in today’s dollars.*
"Part of the reason why members can be better off in an Industry Super Fund is they currently have lower average fees and don’t pay commissions to financial advisers. Industry Super Funds are run only to profit members and do not pay commissions, unlike most retail funds."
Garry Weaven, Industry Super Funds spokesperson.
* Source: Industry Super Funds media release, 20 February 2007, 'Members Could Get $120,000 More In An Industry Super Fund – Says Research '. The amounts are not predictions of actual outcomes. Comparisons are modelled by industry experts SuperRatings (commissioned by Industry Fund Services, on behalf of a number of funds including TWUSUPER) using average fees for 17 Industry Super Funds and 18 Retail Master Trusts as at 31 December 2006. The outcomes above assume a starting balance of $50,000, initial salary of $50,000, 9% superannuation guarantee contributions, no additional salary sacrifice or voluntary contributions, inflation rate of 2.5% pa, salary increases of 3.5% pa, investment return of 7.225% pa (gross of taxes and fees at 8.5%) but with taxes of 15% deducted, explicit costs deducted from members’ accounts (eg member fee) subject to a 15% tax allowance, contribution fees, entry fees, exit fees, additional adviser fees are excluded from calculations, starting age 25 and retirement age 65; employer asset size $150,000. Consider your own objectives, financial situation and needs before making a decision about superannuation, because they are not taken into account in this information. Note that differences in fees may change in the future and this would alter the outcome.