$47 billion has left big super for SMSFs in four years.
In this video Todd Polke warns Australian superannuation members who are stuck in default retail fund options that they may be under‑performing and over‑paying. He cites the industry‑wide shift of A$47 billion from large super funds into self‑managed super funds (SMSFs) over the past four years, framing it as a sign that people are finally checking what their super is doing. Using a client case (A$257,000 in a default index growth option that earned about 8.8% per annum over ten years), he shows that the same money would have returned 9.4% in the ASX 200 and 15% in the US S&P 500, or roughly 9.5% in a medium‑high growth super option. He argues that most members pay fees for “experts” who rarely beat a balanced fund, and that default funds are chosen for them without regard to individual circumstances. Polke then questions the perceived cost barrier of SMSFs, noting that a low‑cost SMSF can be comparable to a retail fund charging 1% (A$2,000 on a A$200,000 balance). He emphasizes the value of control over one’s retirement savings and urges viewers to shop around for super the way they would for a phone plan, encouraging them to review fees, performance, and the possibility of moving to an SMSF.
