Performance is a key indicator when it comes to the choices we make in life.
For example, whether it be a car or even a phone, we make our decisions based on how well these things are expected to perform.
This is the same with industry/retail super as compared to SMSFs.
So sit back, and relax as we compare the average retirement balances of industry/retail superfunds vs. SMSFs.
A report by the Australian Prudential Regulation Authority (APRA) reported the following average super balances for industry/retail super fund members in their 40s, 50s and 60s.
The report found on average:
- Members in their 40s had $156,000 in their super balance.
- Members in their 50s had $281,000 in their super balance.
- Members in their 60s had $453,000 in their super balance.
The reason for this minimal growth is due to the fact that industry/retail super funds are bound by specific investment methods.
This means that your super money is invested in a certain way:
- 85% in shares and property
- 15% in cash and fixed interest.
The illusion of choice is given by industry and retail super funds by allowing for a more conservative investment portfolio:
- 30% in shares and property
- 70% in cash and fixed interest.
The latest report by the ATO reported that SMSF members in their 40s, 50s, and 60s boasted far more impressive average balances.
The report found on average:
- SMSF Members in their 40s had $296,436 in their SMSF balance.
- SMSF Members in their 50s had $627,581 in their SMSF balance.
- SMSF Members in their 60s had $1,100,952 in their SMSF balance.
The reason SMSFs reported higher balances is due to the choice SMSF investors are given in regards to where their SMSF invests.
One avenue is of course SMSF property investment with One Contract Property.
Our solution allows you to invest your super in brand new house and land builds, anywhere across Australia.