Are you a Queensland Government core public sector employee? Then this one’s for you.
What has changed?
In their 2016 Budget, the Queensland Government has introduced legislation that will allow core public sector employees to choose their superannuation fund by 30 July 2017, aligning superannuation agreements in the Queensland public sector to those in the majority of other states.
When 30 June, 2017 rolls around, Queensland Government employees who have their employer contributions paid into a QSuper Accumulation account will be able to choose their superannuation fund. If you are a member of the QSuper Defined Benefit Scheme, it will not apply to you unless you first choose to change to an Accumulation Account.
What Does This Mean?
Queensland Government employees will retain current superannuation entitlements, regardless of whether they remain with QSuper and meet all its Commonwealth superannuation guarantee obligations.
Not only this, but QSuper will be opening their doors and allow anyone to join the fund, as opposed to the previously restricted membership.
It is changes such as this that we encourage clients to review their personal situation to ensure their financial needs are being met, and will continue to be met into the future. Superannuation is more often than not, a set and forget thing. Where do you stand on the superannuation investment awareness scale? According to the 2016 CREATE Report, mandated superannuation means all working Australians are obliged to save for their retirement, but due to low financial literacy rates, too few are focussed on the outcomes they need in retirement, and in particular how much income they will need to live on.
Superannuation awareness matters, and with the gates opening to QSuper, it’s a great opportunity to review your super situation and remind yourself on what you will need in retirement.
How Do I Compare Super Funds?
To ensure that your superannuation fund is right for you, here are some things you could consider when comparing alternatives:
- Investment options – Most funds offer a range of investment options. When you’re selecting your investment style, you should consider how much investment risk you’re prepared to take on based on your personal circumstances, as well as how to generate investment growth.
- Long-term performance – When comparing performance, concentrate on the long-term and remember past performance is no guarantee of future performance. A good tip is to look for a reasonable return. If it looks too good to be true, exercise some (or should that be, extreme) caution. Investment diversification is considered wise, protecting the investor from the extremes of any market sector volatility.
- Fees and costs – Every fund has a product disclosure statement (PDS) that gives details of all significant fees. When comparing fees, remember to factor in any extras that may differ from fund to fund. If you’re unsure, it’s best to see a financial adviser about the matter.
- Insurance cover – The level and cost of insurance is an important factor to consider when choosing a super fund. If you take out personal insurance within your super fund, your insurance premium payments can be deducted from your super contributions. With so many choices and things to consider, it’s important you speak to your financial adviser, who can work with you to find a fund with the level of choice and flexibility, and the right mix of investments to help you meet your wealth management goals.
This article is for general information purposes only. It has been prepared without considering your objectives, financial situation or needs. You should, before acting on the information, consider its appropriateness to your circumstances.
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