The impact of big bank superannuation swindle has been disclosed, with an exhaustive analysis of investment returns indicating that a lot of Australian workers are having their retirement savings being compromised by exorbitant fees and poor rewards for the risks that they are actually taking.

An investigation conducted by The Weekend West of super fund performance since the year 2004 has displayed that funds associated with the big four banks are among the worst performers and have delivered poor value to its clients.

These funds have pulled fees that are at times threefold those of competing industry and corporate funds and provided lesser rewards. The Weekend West took a look at super fund annual fee and return figures filed with the Australian Prudential Regulation Authority back to 2004 and discovered retirement savings being eroded by high fees and poor reward for investment risk.

The conduct of the banks and AMP utilising networks of financial planners to beat their financial products is being investigated by regulators and the financial services royal commission.

The Productivity Commission raised the concern this week about the super savings of Australia’s senior population being eaten away by high fees in a lot of retail super funds.

It cautioned that Australians could be hundreds of thousands of dollars worse off over their lifetime in high-cost funds, with someone now 21 making $50,000 a year having their lifetime super savings slashed from $1 million to $600,000.

The Weekend West’s analysis of 14 years of data shows the immense damage that has already been done to working Australians squeezed by high fees and poor reward for risk.

And despite claims by financial experts who pushed products associated with the banks and AMP that these products were lower risk, the returns clearly show retail funds bore volatility akin to industry and corporate funds pursuing higher growth.

With fees north of 2% coming out each year, APRA figures disclose Commonwealth Bank and its Colonial arm own some of the worst performing funds.

Taking a look at post-fee performance figures given to APRA, someone with $100,000 in Colonial’s FirstChoice fund in July 2004 with $4,500 going in each year would have ideally seen their savings rise to around $261,000 by June 30 last year.

If the worker had put their super into industry super fund UniSuper, their savings would have increased beyond $365,000 — a $100,000 better return for the same volatility.

FirstChoice was not the worst performer among Commonwealth-associated funds, with its Avanteos and Symetry funds offering even more wretched returns for the risk taken.

Yet Commonwealth officials clearly know how to get reward for risk, with their in-house Commonwealth Bank Group Super delivering the second-best value behind the blue-chip Goldman Sachs & JBWere staff super fund.

A Commonwealth staffer making $50,000 a year would have relished a smooth ride, with their $100,000 super fund increasing to more than $343,250 by June last year.

Learn more about superannuation and what it actually is.