Pauls 98 - correct, the super fund would be increasing by 3% (assumes cash holdings) and your min draw down starts off more than that and only increases with age.
As I stated by year 20, your Super is depleted by 50%. 'After 20 years the deposit account would be worth $200,000 whereas if left in Super the balance would be about $100,000 '
So the earnings are the same, and either way there is no tax to consider. The benefit comes from not having to take the min draw down in Super. On the numbers in the example above this is a difference of $4,000. And as this additional income reduces your age pension by 50C in the $, then your net gain is only $2,000, but you are depleting your Super.
From that $2,000 'gain' you have the costs of running a SMSF, and the hassle to boot! Once you remove these costs the 'gain' in the extra income from a Super is almost zero.
Now, if your starting balance is say $400k or more, then completely changes the result.
But there are many many people with Super balances below $200k.
