The Best Possible Retirement (BPR) Index has revealed that small superannuation funds received higher satisfaction levels than those with industry sector funds.
CoreData’s BPR Index report exhibited the high performance of smaller super funds, amidst an “inevitable” increase in mergers throughout 2022. The report surveyed more than 5,900 Australians aged 45 and above.
The research followed speculation that Australians in the future may need to choose between a select number of mega-funds, if small funds were to continue merging.
The Australian Prudential Regulation Authority (APRA) had previously pushed for further consolidation in the industry, alongside the 20% of super funds which failed the Choice performance test.
CoreData revealed that small funds outperformed the industry sector by 1% in the retirement experience, with the former receiving 61% and the latter with 60%.
Both sectors recorded equal outcomes for retirement satisfaction at 61%, confidence and comfort at 63% and financial discipline at 62%.
The report found that retail sector funds performed the highest for pre-retirees, followed by small funds. Retail funds received 56% on preparedness for retirement, 53% on confidence and comfort and 60% on financial discipline.
Overall, the Index recorded a 3% decline in retirement experience, from 56 points to
53 out of 100. CoreData commented that these findings reflected an “austere outlook for the growing number of Australian retirees transitioning into retirement”.
Confidence in future financial security also experienced a decrease, with less than one-third of retirees stating they would have sufficient funds to last their lifetime.
“How Australians retire should not be determined by when they retire and what cycle the market is in, but rather draw on a range of consistent and reliable determinants which give Australians confidence and peace of mind in retirement,” said CoreData founder, Andrew Inwood.
Governor Bullock took a more hawkish stance on Tuesday, raising concerns over Trump’s escalating tariffs, which sent economists in different directions with their predictions.
Equity Trustees has announced the appointment of Jocelyn Furlan to the Superannuation Limited (ETSL) and HTFS Nominees Pty Ltd (HTFS) boards, which have oversight of one of the companies’ fastest growing trustee services.
Following growing criticism of the superannuation industry’s influence on capital markets and its increasing exposure to private assets, as well as regulators’ concerns about potential risks to financial stability, ASFA has released new research pushing back on these narratives.
A US-based infrastructure specialist has welcomed the $93 billion fund as a cornerstone investor.