Thursday, January 31, 2008

World's richest superannuation holders: Australians

Australians are the world's richest superannuation holders, thanks to a stronger domestic currency and the previous government allowing people to put as much as $1 million tax-free into their retirement savings, a report shows.

Australians had an average of $63,794 invested in managed funds at the end of the last financial year, the AFG Global Fund Management Index showed.
Local super funds, on average, outperformed their peers in a top-10 list that included the United States, Canada and France.
In the year to June 30, 2007, the amount managed by Australian managed funds grew by 32.4 per cent.

By comparison, the value of American managed funds climbed by 8.5 per cent to $43,458 and UK funds rose by 23.2 per cent to $17,515.

AFG Financial Planning dealer principal Ross Nayler said the stronger Australian dollar, now trading at around 90 US cents, and laws allowing people to put up to $1 million tax free into their super savings helped make Australia a world leader.
"One of the key messages is we've been at the top of the table for quite some time and we're getting further ahead," he said.

Australian managed funds, over the five years to the second quarter of 2007, posted per capita growth rates of 97.7 per cent.

But they was pipped by Swedish funds, which grew by 114.3 per cent to $24,567 and UK retirement savings -- which expanded by 105.2 per cent.

World leaders or not, another survey, the AMP Superannuation Adequacy Index Report, for January to June last year, found that 30 per cent of Australian workers under 40 would not have enough savings to retire comfortably.
Read more from: businessspectator.com

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