Queensland’s QSuper has been ranked 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 report released by Rainmaker Information found QSuper delivered best value over five years for young people.
The ranking 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.
According to QSuper, the Rainmaker 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.
It found QSuper delivered the best value over five years, achieving returns of 6.5% per annum while it ranked third over three years with returns of 5.6% per annum.
The study noted that 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,” Mr Murray said.
“It is among the lowest of any super fund in Australia and means more money goes into members’ accounts,” he 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.”