Most Government employees that I
work with are employed by the State Government as teachers and nurses. These
clients will often report to me that their Superannuation accounts are
"incredibly safe" because it is Government superannuation.
Unfortunately, this misnomer is no longer correct. Yes, if you have a Defined
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your superannuation is underwritten by the state, and in Queensland it is in
strong position (check out the actuarial report here), but if you are in an Accumulation account, then you are in the same
boat as the rest of us. Sure, you still get 12.5% in contributions, as opposed
to the measly 9.5% the rest of us get, but that is your only advantage as you
are in the same system as those working in private enterprise, and are subject
to the same market movements and vagaries of trustee decisions.
Sorry...what? I am a nurse at the
base hospital, and you're telling me that my super is no different? That it
isn't safer? Yes, that is exactly what I am saying. You, as a Government
employee, used to live with this security blanket that your superannuation
would be as "safe as houses". The reality is that this no longer exists.
That secure system has been dismantled because it was costing too much money,
so from now on in, you had better pay attention, otherwise, you may find that
your "safe house" was actually located in a town like Moranbah.
So, now that you know, what do
you do? Well, option one, which I don't recommend, is that you can put your
head in the sand, and keep parroting that "it is the best super out
there", because Joan in accounts said so, and she has been with the
Government for 40 years (and, by the way, probably has a Defined Benefit
account), or, you can start to educate yourself on what you actually have.
In educating yourself, look for
the the things that matter. The things that matter are, your risk profile, the
asset allocation you are in, the investment choice that is available, diversity
of investment managers, how the managers invest your money, the liquidity of
the assets, the transparency of the fund, the ease of access to reporting, the
insurance cover. What about the return, I hear you ask. Well, if you get these
right, then the return will follow. It's when Lehmen Brothers 2 hits that you
be thankful that you looked at your superannuation fund with more scrutiny than
Joan suggested.
If you do all of this, and you're
satisfied that you are still in a good spot, then happy days! If not, then
please get yourself to a Financial Planner, and go over it with them. Still
doubting? Well, I'll need to pull out the conspiracy theory that I've heard
bandied around the employee campfire more than once, the Government never
changes things unless there is an advantage to one thing...the Government.
Find Erin* at Achieveit
Financial Planning, or call for an appointment on 07 4638 5011.
*Authorised Representative of
Securitor Financial Group Ltd ABN 48 009 189 495 AFSL 240687
This is general information only
and does not consider your personal circumstances. You should not act on any
recommendation without obtaining professional advice specific to your
circumstances. We recommend you speak to a financial adviser before acting on
any of the information you read on this website.
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