Australians' Retirement Savings Fund Highest in 6 Years, Kiwis Benefit from Transferable Superannuation

Australians are in for a treat when it's time to open superannuation statements by the end of the year. Average returns are reported to be at their highest in six years due to a strong market leap in the previous year.

The popular growth fund has increased by 15.5 per cent the past year according to official figures. Despite the falling shares in the Australian market, stocks have closed the financial year 2012-13 at 17 per cent. This is the strongest market return since the global financial crisis. Due to its recent market performance, it is able to generate the third best superannuation returns in 20 years.

Research organization Chant West reports show strong growth in Australia's retirement savings fund for the financial year 2012-13. The recent figure is just below the 15.6 per cent generated in 2007 which is also just before the global financial crisis. In 1997, superannuation returns were as high as 19.4 per cent.

The super fund account covering most Australian workers have increased to 10.5 per cent and 18 per cent. Retirement funds of workers with higher exposure to property and shares usually perform better.

According to Chant West director Warren Chant, the superannuation fund performance in the recent year is the fourth consecutive positive return. The median growth fund has added 50 per cent since its low figure by the end of February 2009.

The past four years has restored faith in superannuation as an efficient financial tool to save for retirement. Chant admitted the recent volatility in the Australian share market has affected investor confidence and caused the market slump. He says the downward slide of the share market can only be avoided with a solid recovery from the global economy since investors reluctantly removes their hold from the money tap of US Federal Reserve.

Retirement savings transferrable to New Zealand

Starting July 1, Kiwis who have worked in Australia can transfer their retirement savings when they go back home to New Zealand. The Australian government made this possible through legislation to allow New Zealanders to take their retirement funds in Australia and transfer them to participating KiwiSaver schemes.

Under current legislation, all employers with Kiwi workers in Australia will need to contribute to a participating superannuation fund in Australia.