POWERED BY MOMENTUM MEDIA
Call for integrity in super debate
Financial assets that could supposedly assist retirees financially will never deliver the same stability as super, according to Association of the Superannuation Funds of Australia (ASFA).
The association's chief executive, Martin Fahy, said ASFA strongly refuted any alternative facts about the significance of super and that super remained the main game in town.
"Analysis of wealth distribution using mean or average data instead of an approach based on the median or typical Australian is breathtaking in its lack of analytical rigour," Fahy said.
Fahy said that figures from the Australian Bureau of Statistics (ABS) showed that super was still the most commonly held asset after homes, bank and accounts, and motor vehicles for Australians in the 15 to 64 year age range.
Together with owner-occupied housing, Fahy said super remained the most significant form of saving to support lifestyle in retirement for 90 per cent of households.
He called out debate that super was not beneficial to all income earners and said that the sector would continue to provide for the ageing population.
"Another key fact under attack by some commentators is that super already makes a substantive difference to the retirement incomes of low-income earners," he said.
"The suggestion that super doesn't assist low-income earners is a nonsense.
"Even low balances under the assets test threshold can lead to significant increases in income."
Fahy said Australians should not sell out future retirees for short-term fiscal imperatives and said those who would reach a comfortable standard of income in retirement was set to increase 20 per cent by 2040.
Recommended for you
Vanguard Super has reported strong returns across most of its investment options, attributed to a “low-cost, index-based approach”.
The fund has achieved double-digit returns amid market volatility, reinforcing the value of long-term investment strategies for its members.
Australian super funds notched a third consecutive year of strong returns, with the median balanced option delivering an estimated 10.1 per cent over the 2024-25 financial year, but an economist has warned that the rally may be harder to sustain as key risks gather pace.
AustralianSuper has reported a 9.52 per cent return for its Balanced super option for the 2024–25 financial year, as markets delivered another year of strong performance despite the complex investing environment.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
92.15 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
53.24 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
43.15 3 y p.a(%)
4
DomaCom Shoreline North Coogee
36.26 3 y p.a(%)
5
GAM LSA Private Shares AU I
35.87 3 y p.a(%)
