Yes This Is a Game Changer

This article appeared on the ABC news website on 9th October 2020.

Budget super changes are being hailed as a huge game-changer. Here's why

https://www.abc.net.au/news/2020-10-09/budget-super-changes-2020-superannuation/12739808

My comments are in purple.

"The way our system works right now is that new super accounts are often automatically created when you change jobs.

"That means multiple sets of fees and multiple sets of insurance — and really bad outcomes," said Xavier O'Halloran from Super Consumers Australia.

About 4.5 million people have multiple accounts — paying a total of $450 million a year in extra fees."

Ok, thats actually a good thing I thought, this sounds interesting, lets have a further look.

And then my jaw dropped!

The Federal Government plans to introduce a new online comparison tool called YourSuper.

It'll provide a table of super funds ranked by fees and returns, which should take some of the pain out of researching the best super account.

As written on my website, superannuation trusts are trusted to invest your super and you as the beneficiary of the trust are meant to benefit from this. So, the superannuation fund is not where your super is invested so how are they going to rate returns when your super is invested in a whole range of managed funds and ETF’s? My guess is it will be a pay to play job. Very similar to other websites where they pay rating agency’s to get a better ranking.

The next headline:

Can I find out if my super fund is doing well?

What are they basing this on? Will it show all of the asset allocations such as balanced, high growth, conservative? A better question is have they called you, done a fact find to see what type of investor you are? Asked you questions to asses how much you need to be insured for? I bet not.

Next Headline:

But what does all this mean for my insurance?

There are some concerns that having a super fund that moves with you might mean people miss out on getting the right insurance coverage for their occupation or situation.

For instance, some occupations are not covered under general insurance policies.

But there are ways to overcome this.

"Make sure you call your super fund and they can let you know if your profession or your current working arrangements mean you can get quality cover," Mr O'Halloran suggested.

I have an idea! Hows about they call you! I mean they work for you. You pay them fee’s to look after you and not treat you like a number right?

One example you might find interesting. One of the super company’s say they will only pay your TPD ( Total & permanent disabled ) claim if you meet their test. The test, if you can lift 5 kg and get yourself off the wheelchair and on to the toilet then you are not classed as TPD in their eyes. Yes, you read that right. How about the income protection insurance that states you must be travelling to & from work when you get injured. That's a good one hey. I will write more as this tool is rolled out. Happy Friday