Superannuation funds shower us with heart-warming ads. Whether it’s at the footy, on the TV or over the radio, smiling adults and catchy jingles sell the promise of financial security.
However, what really matters when choosing a super fund? Cash.
Last week, IOOF unveiled plans to become one of the country’s largest funds after it acquires NAB’s MLC Wealth. IOOF chief executive Renato Mota said “size matters” and predicted there would be only a handful of mega-funds in the future, with the largest amassing $500 billion in assets.
The reason for this trend? “As funds get bigger, they can make prices lower...