Stashing savings in a super fund sounds like a pretty boring way to spend your money, but it’s actually a killer investment. And the latest research proves it.
Sharp tooled research group SuperRatings has found that Australian super funds outperformed the local sharemarket in 2014, delivering investors in the median balanced fund – the fund the majority of Aussies are invested in – an average return of 7.5 per cent.
That makes a third consecutive year of gains, and stacks on top of the extraordinary 16.3 per cent return these funds gushed 2013.
If you’d tried your own hand at buying stocks, it’s very unlikely you would have topped these results.
Last year’s result was boosted by a 7.9 per cent drop in the Aussie dollar over the year, providing a handy leg up for overseas assets that make up about one-fifth of balanced fund balances.
Stacking up the result over a ten year period, SuperRatings say that $10,000 flicked into a fund in 2004 would now be worth $18,179.
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And not only do the returns stack up, but the money you put into your fund over and above what your employer is obliged to contribute is taxed at a much lower rate than you’re likely paying on your wages.
So, if you haven’t already, chat to payroll this week and see what the score is. Kicking more into your super could be the best investment move you ever make.
Image: Stokeparker, via Flickr