Super:the aftershocks continue

The global financial crisis had a big impact on the superannuation savings of thousands of Australians.

And the aftershocks aren’t over yet.

SuperRatings, for example, notes that the Median Balanced Superannuation fund recorded a 0.39% decline in August on the back of a 1.99% drop in the ASX 200.

But there are things you can – and should – do to protect your ultimate superannuation payout.

One is to think about switching to an industry fund.

Their fees can be a lot lower, than those of traditional funds.  That can make a very significant difference to your ultimate payout.

Industry funds are union based, so ringing your union might be a good place to start looking for one.

What, though, is the broader picture for superannuation performance in Australia?

SuperRatings has something to say about that, too.

The agency notes that the latest set back contrasts to fund performance  a year ago, when markets were in the midst of a strong rally.

It says “…returns are currently stuck in a holding pattern until we see a sustained trend in positive economic data.

“The median return for the first quarter of Financial Year 09/10 of 9.27% accounted for a large proportion of the strong full year return of 9.79%,” it adds.

“However, as these returns are cycled out and replaced by the returns of a flat market, it is anticipated that 1 year returns will remain subdued,” SuperRatings warns.

Superannuation, though, is ultimately a long term investment?  So how does it look, in that light?  SuperRatings has produced figures illustrating that, too.

They are set out below.

The month of August 2010  ………………    – 0.39%

Financial year to 30 August 2010  ……      + 1.67%

Rolling 1 year return to 30 August 2010 .. – 4.31% pa

Rolling 3 year return to 30 August 2010 .. – 3.09% pa

Rolling 5 year return to 30 August 2010 .. + 3.08% pa

Rolling 7 year return to 30 August 2010 ..  + 6.18% pa

Rolling 10 year return to 30 August 2010..  + 4.62% pa