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Employers will be able to use a new site called YourSuper to compare super funds and see any funds that are underperforming.
A high-performing superannuation product rather than an underperforming one could significantly boost your employees’ retirement savings.
As one of a number of Australian Government superannuation reforms expected to be introduced from 1 July 2021,¹ the interactive, online YourSuper comparison site will aim to help Australians choose the best super product for their circumstances and avoid poor-performing funds and high-fee products.
The YourSuper comparison tool will also aim to make it easy for employers and your employees to make an informed choice about who manages their superannuation.
The YourSuper comparison tool will aim to make the performance of MySuper products clear, requiring funds to compete for a member’s savings.
According to the Australian Government,² the tool aims to empower Australians to make their own decision about who manages their retirement savings with simple, clear and trusted information.
The Government says when superannuation products are easy to compare, Australians are more likely to become engaged with superannuation.
As a result they may be more likely to avoid poor performing and high-fee products.
This also aims to encourage more competition in the super system so funds lower fees and increase returns for members.
If an employee is starting a new job, they will be able to use the YourSuper comparison tool to find a MySuper account if they don’t already have one.
It is intended that the YourSuper comparison tool will be administered by the ATO.
It will be based on information that superannuation funds report to the Australian Prudential Regulation Authority (APRA) and will be developed in consultation with the Australian Treasury.
The information about product performance will be updated quarterly so your employees can be sure they are making decisions using up-to-date information.
According to the Australian Government, the YourSuper tool will:
The Australian Government says Australians empowered to choose a high performing super product compared with an underperforming product may enjoy significantly boosted retirement incomes.
The Government estimates that more individuals making informed decisions about their superannuation and increased engagement via the YourSuper comparison tool will provide an additional benefit of $3.3 billion over 10 years.
For example, it says a typical 50-year-old who uses the YourSuper comparison tool to choose a top performing fund after being notified of underperformance could have around $60,000 more superannuation at retirement.
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Deciding what is best for you will depend on your personal circumstances and you may want to seek personal financial advice to get the most from your superannuation. You can find out more about financial advice options at qsuper.qld.gov.au/advice
1. As at May 2021 these changes have not yet been passed by Parliament
2. Australian Treasury, October 2020, Your Future, Your Super, accessed 23 April 2021, at treasury.gov.au
3. Before you consolidate your super, you should check with your other super funds if there are any fees or tax implications, or loss of insurance or other benefits.
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