Australians should consider putting their money in their superannuation instead of property as fund balances are now growing faster than house prices.
Analysis by Chant West showed median growth-orientated retirement balances surged by 12.2 per cent since July 1 - something unthinkable only a year ago.
The double-digit growth in just nine months, to the end of March 2021, was even stronger than the 7.7 per cent surge in Sydney s median house price during the past year.
Australia s share market was this week close to reaching a record high, with the benchmark S&P/ASX200 just 1.5 per cent below the all-time peak of 7,197 set in February 2020 shortly before the Covid shutdowns.
Majority of super funds take a COVID-19 hit
Share
About two-thirds of superannuation funds made a loss over the 12 months to June 2020, according to the latest data from the prudential regulator, raising questions about the value of active funds management.
Driven by the coronavirus-induced economic downturn in the later months of the year, more than 100 funds returned negative results in FY 2019-20, ranging from -0.01 per cent through to -58.5 per cent.
The data from the Australian Prudential Regulation Authority is calculated at the fund level and does not include a breakdown of individual product returns; it also does not factor in reasons for outlier results.