This week the Australian press reported, "More than six million Australians would have been better off stuffing cash under a mattress than putting it in their employers' default superannuation option over the last five financial years."
Even more alarming is the statistic that most Australians make no active choice when it comes to super; the majority (60 per cent) have their super paid automatically into the default investment option of their employers chosen superannuation fund.
Thanks to the battering of the global financial crisis, every dollar invested in a typical default fund went backwards, after fees and taxes, by 0.3 per cent a year on average over the past five financial years, according to data from SelectingSuper.
Of the 83 default super options available over the five years, 51 delivered negative annual returns for members (6,066,129 member accounts) and 32 delivered positive returns (10,179,634 member accounts) therefore showing that choice of super fund is crucial. Read more…