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

Super concessions not so generous: report

Australia makes no impost on pension benefits after the age of 60. Picture:File Source: Supplied

TAX concessions within Australia's superannuation system are not as generous as those in other countries.

A new study shows the net retirement benefits of an average British worker is 16.4 per cent - or $43,534 - higher than their Australian counterpart.

The research by consultant Mercer was released on Monday amid speculation the federal government could tinker with the tax concessions to generate budget savings.

It compares Australia to eight other countries considered to have the best pension systems in the world: Canada,
Chile, Denmark, Netherlands, Sweden, Switzerland, the UK and US.

Mercer senior partner David Knox says tax treatment of superannuation can be controversial because the greatest benefits are inevitably received by those who participate to the greatest extent - primarily higher income earners.

"However, it's also important to look at our retirement savings system in its entirety and the impact altering the tax model could have on the future costs of funding the age pension," he said.

Australia is the only country of all nine that charges a tax rate on employer contributions, at 15 per cent, and the only one not to offer employee tax deductible contributions.

It's also one of three to have a tax rate on investment income, alongside Denmark and Sweden.

This has a direct impact on the final benefit received by retirees, and in many cases increases the likelihood of people receiving an age pension, Mercer says.

Australia makes no impost on pension benefits after the age of 60. Chile is the only other country with the same regime, although its workers generally have lower incomes.

But Australia does have the lowest contribution cap - at $25,000 per annum - which is significantly short of other countries when expressed as a percentage of average earnings.

"We believe increasing concessional caps, particularly for those aged over 45 should be a priority for government, rather than reducing super tax concessions," Mercer managing director David Anderson said.

"Higher superannuation benefits due to increased contributions, improved investment returns or lower taxation will lead to less pressure from the ageing population in future budgets."

View the original article here

Super concessions not so generous: report

Australia makes no impost on pension benefits after the age of 60. Picture:File Source: Supplied

TAX concessions within Australia's superannuation system are not as generous as those in other countries.

A new study shows the net retirement benefits of an average British worker is 16.4 per cent - or $43,534 - higher than their Australian counterpart.

The research by consultant Mercer was released on Monday amid speculation the federal government could tinker with the tax concessions to generate budget savings.

It compares Australia to eight other countries considered to have the best pension systems in the world: Canada,
Chile, Denmark, Netherlands, Sweden, Switzerland, the UK and US.

Mercer senior partner David Knox says tax treatment of superannuation can be controversial because the greatest benefits are inevitably received by those who participate to the greatest extent - primarily higher income earners.

"However, it's also important to look at our retirement savings system in its entirety and the impact altering the tax model could have on the future costs of funding the age pension," he said.

Australia is the only country of all nine that charges a tax rate on employer contributions, at 15 per cent, and the only one not to offer employee tax deductible contributions.

It's also one of three to have a tax rate on investment income, alongside Denmark and Sweden.

This has a direct impact on the final benefit received by retirees, and in many cases increases the likelihood of people receiving an age pension, Mercer says.

Australia makes no impost on pension benefits after the age of 60. Chile is the only other country with the same regime, although its workers generally have lower incomes.

But Australia does have the lowest contribution cap - at $25,000 per annum - which is significantly short of other countries when expressed as a percentage of average earnings.

"We believe increasing concessional caps, particularly for those aged over 45 should be a priority for government, rather than reducing super tax concessions," Mercer managing director David Anderson said.

"Higher superannuation benefits due to increased contributions, improved investment returns or lower taxation will lead to less pressure from the ageing population in future budgets."

View the original article here