Monday, September 26, 2011

Retail super funds a poor investment compared to money in the bank over 14 years - with the benefit of hindsight.

By Business editor Peter Ryan

Anyone close to retirement or already retired will be closely watching the performance of their superannuation fund given the current market volatility.

Even though superannuation needs to be viewed over the long term, the returns also depend on the type of fund managing retirement nest eggs.

Research out today from the Industry Super Network shows that when it comes to retail super funds, some investors would have been better off putting their super contributions in the bank.

Listen to my interview with David Whiteley from the Industry Super Network from this morning's edition of AM.

"Many of those people would be deeply alarmed to find that if they've invested in a retail fund, if that is the default fund at their workplace, over 14 years the performance of that is likely to be inferior to cash. That means many of these people would have been better just putting their money in the bank," according to the Mr Whiteley.

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