QSuper ranked best value fund for young people
02 December 2020
5
min read
QSuper has been ranked as Australia’s best value superannuation fund for people aged in their 20s, according to an external analysis based on fees and performance.
The Superannuation Benchmarking report1 released by Rainmaker Information found QSuper delivered best value over five years for young people.
The ranking is another win for young members, and comes after QSuper was awarded Best Value Super Fund for Young People in Money magazine’s Best of the Best awards announced on 3 December 2020.2
The Rainmaker Superannuation Benchmarking analysis was based on the investment performance to 30 June 2020 that members aged in their 20s would have received after applying their age-based fees.
Rainmaker found QSuper delivered the best value over five years, achieving returns of 6.5% per annum. QSuper also ranked third over three years with returns of 5.6% per annum.
How low fees help young people’s super grow
The study noted young people – deemed to be those in their 20s – in some superannuation funds could pay fees as much as eight times higher than older super fund members, before new rules that capped fees at 3% came into effect.
Under the Protecting Your Super package introduced by the Australian Government, investment fees have been banned from exceeding 3% per year of the balance of a super account holding less than $6,000.
The Protecting Your Super fee caps do not mean changes for QSuper members as the fees our members pay are well below the 3% cap imposed by government legislation.
QSuper’s Chief of Member Experience, Jason Murray, said QSuper aimed to keep fees low so more money went into member’s accounts.
Our use of a percentage-based administration fee is simple and fair. It is among the lowest of any super fund in Australia and means more money goes into members’ accounts,” Mr Murray said.
“This matters particularly to young people with low balances. With a lifetime of work ahead of them, this can make a huge difference to the savings a 20 or 30-year-old will have at retirement.”
Find out more about QSuper’s fees.
QSuper best value for young people
Rainmaker’s assessment reviewed super funds that young people were likely to join, comparing popular MySuper products and selected retail products. Rainmaker did not assess the impact of insurance costs.
Executive Director of Research at Rainmaker Information, Alex Dunnin, said the study found that the way some super funds structured their fees meant young people may end up paying disproportionately higher fees than older people.
“This means for many young people, superannuation fees are unfortunately what they should be worrying about, not returns,” he said.
Mr Dunnin said funds like QSuper should be applauded for its fee structure and performance.
“Their innovative thinking is precisely what the superannuation sector needs,” he said.
1. Media Release, 23 November 2020, QSuper emerges as Australia’s best value super fund for young people, Rainmaker Information, at www.rainmaker.com.au
2. Money magazine awards are solely a statement of opinion and do not represent a recommendation to purchase, hold or sell this product, or make any other investment decisions. Ratings are subject to change. Go to www.moneymag.com.au for details of its ratings criteria. Past performance is not a reliable indicator of future performance. Ratings, awards or investment returns are only one factor that you should consider when deciding how to invest your super.
Disclaimer:
The opinions expressed and those providing comments are theirs alone, and do not necessarily reflect the opinions of the QSuper Board. No responsibility is taken for the accuracy of any of the information supplied and you should seek advice for your circumstances.
While all possible care is taken when preparing this material, using sources that we believe are reliable and accurate at the time of publication, we cannot give a warranty in respect to the information provided, and it should not be regarded as a guarantee of benefits and entitlements.