Heritage Bank CEO Peter Lock today encouraged Australians to consider a retirement savings account as a stable super fund option as new industry figures show superannuation returns continue to fall.
New figures from superannuation research company SuperRatings show balanced funds — the most widely-held super funds — returned an average of 5.6 per cent in 2015, well below the median return of 8.1 per cent in 2014. So far in January, returns are down by 3.8 per cent due to volatility in Chinese markets.
“While industry results remain in positive territory for the fourth-straight-year, turmoil on the global financial markets could see another bumpy year for superannuation returns,” Mr Lock said.
“Entrusting your life savings to the current market volatility of a traditional super fund can be daunting so it’s important for people to be aware that other investment options are available to them.”
Mr Lock said many financial institutions including Heritage Bank offered a retirement savings account – a special type of bank account approved for superannuation savings and pensions.
“Unlike typical superannuation funds, Heritage’s Secure Super Account is capital guaranteed. This means your hard-earned savings are not affected by negative investment market returns,” Mr Lock said.
“And as it’s permanently set at 0.5% above the RBA cash rate, it avoids the fluctuations of global financial markets and helps ensure customers always earn a positive return on their savings.
“Everyone deserves a secure and comfortable lifestyle in their retirement and a retirement savings account can offer stability and peace of mind in your later years.”