How much of my DIY superannuation cash returns are being extracted by super funds?
Problem : Australians managing their own super may lose ~1-3% of their interest on cash in their superannuation transaction accounts compared to the minimum super funds are making on it (benchmarked by the RBA Cash Rate). Interest rates well under 1% are not uncommon for SMSF or DIY Super. By eliminating the value of risk-free cash returns, the finance industry forces people into fee-extracting and unnecessarily high-risk or fraud-exposed investments. Key Ideas : Wealth Extraction; Financial Repression; Negative Real Rates (aka Stealth Tax). Rationale : Australians employees are forced to have 12% of their wages paid into super. If saving in at-call cash outside of super they could get returns ~0.5-1% higher than the RBA Cash Rate. E.g. Macquarie offers 4.25% with the RBA rate at 3.6%. Solution : Force federal politicians to require all super funds to pay a minimum interest rate on cash benchmarked to the RBA Cash Rate (or relevant proxy like BBSW). See prior reforms here . Rew...