Big bank staff enjoy better super returns than customers
Commonwealth Bank employees earned almost $24,000 more in superannuation returns than their customers over the last decade.
Employees at Australia's biggest banks are earning far greater returns on their super funds compared to the funds they sell to the public, it’s been revealed.
An analysis by Industry Super Australia found that over ten years CBA’s not-for-profit staff super fund, Commonwealth Bank Group Super, delivered an average annual return of 6.2% to members.
This is in comparison to the public fund sold by CBA to customers, Colonial First State FirstChoice Superannuation Trust, which only delivered an average annual return of 3.4%.
This means that CBA employees have earned an average of 2.8% more in super returns compared to customers with the public fund, equating to an average of $2,380 more per year and totalling almost $24,000 over the decade.
CBA isn’t the only bank to come under fire for preferencing its employees super returns over that of its customers.
ANZ’s not-for-profit staff super fund outperformed its public fund by an annual average of 2% over the decade, and NAB’s staff fund delivered an average annual return of 1.5% more than its public offering over the same time period.
Industry Super Australia chief executive David Whiteley said, “These differences will be of deep concern to policy makers and the general public. Clearly these institutions have the capacity to deliver better returns to members of the public, but their need to deliver profits to shareholders may be a stumbling block."
The findings come shortly after an Industry Super Australia survey revealed 70% of Australians believe all super funds should be not-for-profit, and less than a third (31%) of Australians believe banks will ensure the superannuation system works in the customers' best interest.
“The three million members of these public offer funds deserve to know whether the banks are putting interests of shareholders before fund members,” said Whitley.
If you’re not happy with your superannuation, consider switching to an industry super fund run to benefit members instead of shareholders.