APRA just released the results of its annual testing of 69 MySuper products and it revealed that four products have failed... for two years!
👉Background: The superannuation industry in Australia is worth a whopping $3.4 trillion. To put that into perspective, if all Aussies pooled together this money, we could buy McDonalds, Nike and Amazon together!
👉 What happened: The Australian Prudential Regulation Authority (APRA) has just released the results of its annual testing of 69 MySuper products. These products cover 13.7 million Australian superannuation accounts.
👉 What else: Four products have failed APRA’s test two years in a row, including products from BT Super and Australian Catholic Super. Eeep.
💡APRA’s performance test was introduced last year to ensure that Aussies were getting better returns on their super fund.
💡For many Aussies, they put their money in a super fund and forget about it… for a looong loong time. But if you earn 1% higher return over a 30 year period, you could be 20% better off at retirement. That's pretty significant.
💡With the new rules, if a fund fails one year, it needs to send a letter saying “Your superannuation product has performed poorly under an annual performance test”. And if it fails the test two years in a row, it must close to new members. That's the ultimate shame.
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