Superannuation: why you should care right now



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Retirement may seem decades away, but with such strong performance and growth in super funds at this very moment, superannuation is finally getting its day in the sun.

After a record breaking tenth consecutive positive financial year return, QSuper is one of two top performing growth funds, having returned an exciting 9.9 per cent in the last financial year.

QSuper-Top-Performing-Rate-City

Source: Chant West
Notes:
1. Where a super fund has more than one investment option in the Growth category, only its main investment option has been included in the top 10.
2. Performance is shown net of investment fees and tax. It is before administration fees and adviser commissions.  

A typical long-term objective of superannuation funds is to beat inflation by 3.5 per cent, and current figures show the top performing funds are now returning over 8 per cent above the current inflation rate of 1.3 per cent.

Such impressive returns on superannuation investments could signal a shift in consumer interest toward super funds in Australia.

Retirement-Savings-Super-Funds-QSuper

The recent RBA rate cuts and ensuing reduction on interest rates for term deposits and savings accounts have worried some long-term savers.

However, with a 9.9% return on super investments, putting money into your super for retirement could be a competitive alternative to your traditional savings tactics.

What to look out for when reviewing fund performance

A fund’s performance over one financial year may not be a reliable indicator of future performance, QSuper’s head of investment strategy Damian Lillicrap says:

“Australians should focus on long-term performance, because for most fund members, superannuation is a multi-year, multi-decade commitment.”

QSuper-Top-Performing-Funds-Rate-City

Source: Chant West
Notes:
1. Where a super fund has more than one investment option in the Growth category, only its main investment option has been included in the top 10.
2. Performance is shown net of investment fees and tax. It is before administration fees and adviser commissions. 

Hidden-Fees-Superannuation-Australia-RateCity

Fees should also play a key part in your decision making process when it comes to choosing a super fund.

A 1% difference in fees may seem insignificant, but as superannuation is a long game, over 40 years this could be a difference of 19% in your final super balance.

Remember, each financial situation is different, so the best way to compare fund fees and charges is through a superannuation calculator, such as the ASIC Moneysmart Super Calculator.

QSuper making waves

Placed at number four in the top performing growth funds in the past decade and named as Australia’s best-performing publicly available balanced option^ in SuperRating’s SR50 Balanced Index (60-76), QSuper could be the fund to watch.

Across the largest 15 superannuation funds, research from Roy Morgan joins that of Chant West to find that QSuper ranks highly, with Roy Morgan data revealing QSuper to be among the highest for member satisfaction in financial performance.

With over 100+ Australian super funds to choose from, comparing your options now with this information in mind could make all the difference when you retire later in life.

^ Based on funds open to the public. Past performance may not be a reliable indicator of future performance. This is the return for the option as it does not take into consideration the timing of contributions, switching or withdrawals. SuperRatings and Chant West do not issue, sell, guarantee, or underwrite this product. Go to superratings.com.au and chantwest.com.au for details of ratings criteria.

The views of the author are not necessarily the views of the QSuper Board. This information is general information only, and you should get professional advice before relying on this information. Past performance is not a reliable indicator of future performance. Each of QSuper’s investment options has a different objective, risk profile, and asset allocation. Visit qsuper.qld.gov.au for more information.

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