Australian workers’ retirement savings eroded by high super fund fees

The West Australian reported this week that super fund performance since 2004 has shown funds linked to the big four banks are among the worst performers and have provided poor value to clients.

These funds have pulled fees sometimes treble those of rival industry and corporate funds and provided far lower rewards. The Weekend West examined super fund annual fee and return figures filed with the Australian Prudential Regulation Authority back to 2004 and found retirement savings being eroded by high fees and a poor reward for investment risk.

The Productivity Commission raised the alarm this week about the super savings of Australia’s aging population being eaten away by high fees in many retail super funds.

It warned that Australians could be hundreds of thousands of dollars worse off over their lifetime in high-cost funds, with someone now 21 earning $50,000 a year having their lifetime super savings slashed from $1 million to $600,000.

The Weekend West’s analysis of 14 years of data shows the damage has already been done to working Australians wedged by high fees and a poor reward for risk.

Not very good is it - that is why so many Club members are setting themselves up for a better retirement by safely investing in residential property themselves!

Brisbane house prices have hit a record high

Pleasing news through from news.com.au showing that Brisbane house prices are continuing to grow, with new figures revealing they have hit a record high, and the outlook for sellers isn’t looking too bad either.

They reported that Brisbane’s house prices have hit a record high with new figures revealing the median had now hit $670,000.

While the property market continued to cool in southern states, new figures released by the Real Estate Institute of Queensland showed the median house price within the Brisbane local government area was 3.1 per cent higher in the March quarter.

REIQ CEO Antonia Mercorella said the growth demonstrated “admirable resilience’’ in the local market.

She said the price rise was buoyed by steady population growth and strong demand and a lack of new listings.

Stock on market was down to just 6.1 per cent — the lowest in the state.

As a result, Ms. Mercorella said buyers had to act fast if they wanted to share a property with days on market now at just 32 days.

Have a great weekend and catch you next week!

Warm Regards,

Troy