Funds report super returns for retirees

Source: Supplied

THE average retirement nest-egg has grown by more than 12 per cent so far this financial year, the strongest performance by superannuation funds since before the global financial crisis.

Two separate analyses have revealed median balanced superannuation funds - the most common variety - have soared by more than 12.5 per cent since July, the best result since 2007.

In the past decade, the average superannuation nest egg has grown 7.2 per cent each year.

That number more than halves to an average of just 3.2 per cent when the past five years of returns are calculated, with the GFC to blame.

But Chant West director Warren Chant said that with another quarter to go it appeared Australians were on track for pre-GFC double-digit growth in their retirement savings this financial year.

"This year looks as though it's going to be another really good year," he said. "It's been a terrific nine months and in the last 12 months and for the year to March, they've earned 11 per cent; for the nine months it's about 13 per cent."

Chant West said shares and listed property were the best performers in the March quarter - Australian shares increased 8 per cent.

Australian and global Real Estate Investment Trusts (REITs) increased by 5.3 per cent and 8.8 per cent respectively.

However bond markets weren't as successful, Australian and international bonds rose by just 0.2 per cent and 1.2 per cent respectively.

SuperRatings' research analyst Leo Tratras said fund members had a promising start to 2013 before experiencing a slight drop last month due to the banking woes in Cyprus.

"January and February were quite strong but in March there was only a small fall of 0.2 per cent," he said.

"It shouldn't come as a surprise given how strong the first few months of the year were; despite that, the quarterly performance was still up over 4 per cent."

SuperRatings figures found the median balanced option rose by 2.6 per cent in January and a further 2 per cent in February before falling by 0.2 per cent last month.

But Mr Tratras said the March result was a good one compared to the sharemarket's 2.2 per cent fall.

"When you compare that fall in the wider Australian sharemarket to the relatively small drop in super funds it's quite a good performance.

"The bad news isn't as bad as it could have been."

A majority of Australians have their retirement savings invested in their fund's default option, which is usually the balanced investment option that has growth-style assets between 60 and 76 per cent.

View the original article here

Funds report super returns for retirees

Source: Supplied

THE average retirement nest-egg has grown by more than 12 per cent so far this financial year, the strongest performance by superannuation funds since before the global financial crisis.

Two separate analyses have revealed median balanced superannuation funds - the most common variety - have soared by more than 12.5 per cent since July, the best result since 2007.

In the past decade, the average superannuation nest egg has grown 7.2 per cent each year.

That number more than halves to an average of just 3.2 per cent when the past five years of returns are calculated, with the GFC to blame.

But Chant West director Warren Chant said that with another quarter to go it appeared Australians were on track for pre-GFC double-digit growth in their retirement savings this financial year.

"This year looks as though it's going to be another really good year," he said. "It's been a terrific nine months and in the last 12 months and for the year to March, they've earned 11 per cent; for the nine months it's about 13 per cent."

Chant West said shares and listed property were the best performers in the March quarter - Australian shares increased 8 per cent.

Australian and global Real Estate Investment Trusts (REITs) increased by 5.3 per cent and 8.8 per cent respectively.

However bond markets weren't as successful, Australian and international bonds rose by just 0.2 per cent and 1.2 per cent respectively.

SuperRatings' research analyst Leo Tratras said fund members had a promising start to 2013 before experiencing a slight drop last month due to the banking woes in Cyprus.

"January and February were quite strong but in March there was only a small fall of 0.2 per cent," he said.

"It shouldn't come as a surprise given how strong the first few months of the year were; despite that, the quarterly performance was still up over 4 per cent."

SuperRatings figures found the median balanced option rose by 2.6 per cent in January and a further 2 per cent in February before falling by 0.2 per cent last month.

But Mr Tratras said the March result was a good one compared to the sharemarket's 2.2 per cent fall.

"When you compare that fall in the wider Australian sharemarket to the relatively small drop in super funds it's quite a good performance.

"The bad news isn't as bad as it could have been."

A majority of Australians have their retirement savings invested in their fund's default option, which is usually the balanced investment option that has growth-style assets between 60 and 76 per cent.

View the original article here

Funds report super returns for retirees

Source: Supplied

THE average retirement nest-egg has grown by more than 12 per cent so far this financial year, the strongest performance by superannuation funds since before the global financial crisis.

Two separate analyses have revealed median balanced superannuation funds - the most common variety - have soared by more than 12.5 per cent since July, the best result since 2007.

In the past decade, the average superannuation nest egg has grown 7.2 per cent each year.

That number more than halves to an average of just 3.2 per cent when the past five years of returns are calculated, with the GFC to blame.

But Chant West director Warren Chant said that with another quarter to go it appeared Australians were on track for pre-GFC double-digit growth in their retirement savings this financial year.

"This year looks as though it's going to be another really good year," he said. "It's been a terrific nine months and in the last 12 months and for the year to March, they've earned 11 per cent; for the nine months it's about 13 per cent."

Chant West said shares and listed property were the best performers in the March quarter - Australian shares increased 8 per cent.

Australian and global Real Estate Investment Trusts (REITs) increased by 5.3 per cent and 8.8 per cent respectively.

However bond markets weren't as successful, Australian and international bonds rose by just 0.2 per cent and 1.2 per cent respectively.

SuperRatings' research analyst Leo Tratras said fund members had a promising start to 2013 before experiencing a slight drop last month due to the banking woes in Cyprus.

"January and February were quite strong but in March there was only a small fall of 0.2 per cent," he said.

"It shouldn't come as a surprise given how strong the first few months of the year were; despite that, the quarterly performance was still up over 4 per cent."

SuperRatings figures found the median balanced option rose by 2.6 per cent in January and a further 2 per cent in February before falling by 0.2 per cent last month.

But Mr Tratras said the March result was a good one compared to the sharemarket's 2.2 per cent fall.

"When you compare that fall in the wider Australian sharemarket to the relatively small drop in super funds it's quite a good performance.

"The bad news isn't as bad as it could have been."

A majority of Australians have their retirement savings invested in their fund's default option, which is usually the balanced investment option that has growth-style assets between 60 and 76 per cent.

View the original article here

Funds report super returns for retirees

Source: Supplied

THE average retirement nest-egg has grown by more than 12 per cent so far this financial year, the strongest performance by superannuation funds since before the global financial crisis.

Two separate analyses have revealed median balanced superannuation funds - the most common variety - have soared by more than 12.5 per cent since July, the best result since 2007.

In the past decade, the average superannuation nest egg has grown 7.2 per cent each year.

That number more than halves to an average of just 3.2 per cent when the past five years of returns are calculated, with the GFC to blame.

But Chant West director Warren Chant said that with another quarter to go it appeared Australians were on track for pre-GFC double-digit growth in their retirement savings this financial year.

"This year looks as though it's going to be another really good year," he said. "It's been a terrific nine months and in the last 12 months and for the year to March, they've earned 11 per cent; for the nine months it's about 13 per cent."

Chant West said shares and listed property were the best performers in the March quarter - Australian shares increased 8 per cent.

Australian and global Real Estate Investment Trusts (REITs) increased by 5.3 per cent and 8.8 per cent respectively.

However bond markets weren't as successful, Australian and international bonds rose by just 0.2 per cent and 1.2 per cent respectively.

SuperRatings' research analyst Leo Tratras said fund members had a promising start to 2013 before experiencing a slight drop last month due to the banking woes in Cyprus.

"January and February were quite strong but in March there was only a small fall of 0.2 per cent," he said.

"It shouldn't come as a surprise given how strong the first few months of the year were; despite that, the quarterly performance was still up over 4 per cent."

SuperRatings figures found the median balanced option rose by 2.6 per cent in January and a further 2 per cent in February before falling by 0.2 per cent last month.

But Mr Tratras said the March result was a good one compared to the sharemarket's 2.2 per cent fall.

"When you compare that fall in the wider Australian sharemarket to the relatively small drop in super funds it's quite a good performance.

"The bad news isn't as bad as it could have been."

A majority of Australians have their retirement savings invested in their fund's default option, which is usually the balanced investment option that has growth-style assets between 60 and 76 per cent.

View the original article here

Funds report super returns for retirees

Source: Supplied

THE average retirement nest-egg has grown by more than 12 per cent so far this financial year, the strongest performance by superannuation funds since before the global financial crisis.

Two separate analyses have revealed median balanced superannuation funds - the most common variety - have soared by more than 12.5 per cent since July, the best result since 2007.

In the past decade, the average superannuation nest egg has grown 7.2 per cent each year.

That number more than halves to an average of just 3.2 per cent when the past five years of returns are calculated, with the GFC to blame.

But Chant West director Warren Chant said that with another quarter to go it appeared Australians were on track for pre-GFC double-digit growth in their retirement savings this financial year.

"This year looks as though it's going to be another really good year," he said. "It's been a terrific nine months and in the last 12 months and for the year to March, they've earned 11 per cent; for the nine months it's about 13 per cent."

Chant West said shares and listed property were the best performers in the March quarter - Australian shares increased 8 per cent.

Australian and global Real Estate Investment Trusts (REITs) increased by 5.3 per cent and 8.8 per cent respectively.

However bond markets weren't as successful, Australian and international bonds rose by just 0.2 per cent and 1.2 per cent respectively.

SuperRatings' research analyst Leo Tratras said fund members had a promising start to 2013 before experiencing a slight drop last month due to the banking woes in Cyprus.

"January and February were quite strong but in March there was only a small fall of 0.2 per cent," he said.

"It shouldn't come as a surprise given how strong the first few months of the year were; despite that, the quarterly performance was still up over 4 per cent."

SuperRatings figures found the median balanced option rose by 2.6 per cent in January and a further 2 per cent in February before falling by 0.2 per cent last month.

But Mr Tratras said the March result was a good one compared to the sharemarket's 2.2 per cent fall.

"When you compare that fall in the wider Australian sharemarket to the relatively small drop in super funds it's quite a good performance.

"The bad news isn't as bad as it could have been."

A majority of Australians have their retirement savings invested in their fund's default option, which is usually the balanced investment option that has growth-style assets between 60 and 76 per cent.

View the original article here

Funds report super returns for retirees

Source: Supplied

THE average retirement nest-egg has grown by more than 12 per cent so far this financial year, the strongest performance by superannuation funds since before the global financial crisis.

Two separate analyses have revealed median balanced superannuation funds - the most common variety - have soared by more than 12.5 per cent since July, the best result since 2007.

In the past decade, the average superannuation nest egg has grown 7.2 per cent each year.

That number more than halves to an average of just 3.2 per cent when the past five years of returns are calculated, with the GFC to blame.

But Chant West director Warren Chant said that with another quarter to go it appeared Australians were on track for pre-GFC double-digit growth in their retirement savings this financial year.

"This year looks as though it's going to be another really good year," he said. "It's been a terrific nine months and in the last 12 months and for the year to March, they've earned 11 per cent; for the nine months it's about 13 per cent."

Chant West said shares and listed property were the best performers in the March quarter - Australian shares increased 8 per cent.

Australian and global Real Estate Investment Trusts (REITs) increased by 5.3 per cent and 8.8 per cent respectively.

However bond markets weren't as successful, Australian and international bonds rose by just 0.2 per cent and 1.2 per cent respectively.

SuperRatings' research analyst Leo Tratras said fund members had a promising start to 2013 before experiencing a slight drop last month due to the banking woes in Cyprus.

"January and February were quite strong but in March there was only a small fall of 0.2 per cent," he said.

"It shouldn't come as a surprise given how strong the first few months of the year were; despite that, the quarterly performance was still up over 4 per cent."

SuperRatings figures found the median balanced option rose by 2.6 per cent in January and a further 2 per cent in February before falling by 0.2 per cent last month.

But Mr Tratras said the March result was a good one compared to the sharemarket's 2.2 per cent fall.

"When you compare that fall in the wider Australian sharemarket to the relatively small drop in super funds it's quite a good performance.

"The bad news isn't as bad as it could have been."

A majority of Australians have their retirement savings invested in their fund's default option, which is usually the balanced investment option that has growth-style assets between 60 and 76 per cent.

View the original article here

Retirees leave inheritance wanting

Leaving large estates to their children is just one retiree myth that has been busted. Source: National Features

MOST retirees don't think it's important to leave an inheritance, and even the family home is losing its attraction as an asset to pass on to the children.

Jeremy Cooper, an architect of the major superannuation reforms to take effect this year and the chairman of retirement income at financial services group Challenger, says the inheritance issue is one of several retiree financial myths that should be busted.

The message to today's retirees and their children is that life has changed and retirement is now longer and more expensive, Mr Cooper says.

"The cost of living is nothing compared with the cost of living longer," he says.

"The myth that most retirees will put their kids' inheritance ahead of their own lifestyle in retirement may have been true of the very frugal 'silent' generation but is outdated today especially in our capital cities."

Previously unpublished data from last year's Challenger-sponsored Seniors Sentiment Index found that just 15 per cent of retirees believe it's very important to leave an estate.

"Even the family home isn't that important anymore to leave to the kids," Mr Cooper says, with the research finding that just 52 per cent attach any importance to leaving it.

He says another myth is the belief that retirees can take the ups and downs of the market.

In reality, more than 37 per cent say they cannot tolerate any losses and only 13 per cent say they would tolerate more than 5 per cent in any one year.

It's also a myth that retirement is a time to worry less about money, with more than 56 per cent concerned they will outlive their savings.

Mr Cooper says one of the largest and most dangerous myths is that retirees believe they will live on average for 20 years after age 65.

Today the average life expectancy at age 65 is 22 years for men and 25 for women, but one in five will live about 30 years, he says.

HSBC Australia's head of retail banking and wealth management, Graham Heunis, says we are likely to spend more than 20 years in retirement but only have 11 years worth of savings despite being willing to reduce our income by a third.

"A newly published HSBC report that asked 15,000 people in 15 countries including Australia about their retirement intentions found that 60 per cent of Australians admit they are not adequately preparing for post-working life," Mr Heunis says.

View the original article here