SMSFs are a better bet than rival super funds: NAB

Self-managed super funds have significantly outperformed their APRA-regulated rivals in six out of the past eight years, reports the Australian.

A report from National Australia Bank shows that on average SMSFs had beaten APRA-regulated funds by 22.5% over the period, after paying all costs.

The numbers indicate a $500,000 investment in an SMSF at the start of the 2004-05 financial year would have returned $345,571 net by the end of the 2012 financial year, compared with the average APRA-regulated fund returning $190,100 net.

Recent figures from the Australian Taxation Office show SMSFs have grown by 26.5% to reach more than 1 million members.

The SMSF Professionals’ Association of Australia (SPAA) chief executive Andrea Slattery said recently: “The number of trustees and members exceeding 1 million is an important milestone for the SMSF industry, clearly demonstrating that there is a growing number of people wanting to take direct responsibility for their retirement savings”.

David Gall, executive general manager of banking and wealth solutions at NAB, told the Australian the results showed SMSFs were not a one-hit wonder.

This article first appeared on SmartCompany.