The superannuation industry is undergoing change, the Royal Commission into banking is accelerating that process along with the uptake of people fed up with high fees and low returns starting personal Self Managed Superannuation Funds (SMSF).

Whilst I do have a SMSF and a state government superannuation fund, this was because when I began employment in the state government it was a requirement to join this fund. I’m glad I did, I was in the final year of intake where no contributions tax was deducted allowing the retirement balance to grow quicker before the fund closed to new members. The tax is deducted when member withdraws their retirement benefit.

Naturally, a prudent person would not retire from this fund as it is governed by special conditions that were specifically reserved for government employees that were not open to the general public. In order to attract talent to work for state government organisations that were unable to match private sector salaries, reward systems were devised to increase benefits and conditions.

What industry funds offer the general public that for-profit funds offer is low fees that result in higher returns for members. The outrageous commissions paid to financial advisors, aka known as salespeople generating personal income streams that benefit themselves and not the people investing their retirement savings.