Many Government or public sector employees have PSS defined benefit superannuation funds. We would like to explain the difference between an accumulation-style superannuation fund, a defined benefit superannuation fund and a self managed superannuation fund.
When you retire, especially if you plan to stick around the Perth area, you don’t know how much money you will need to live the lifestyle you want. We feel it is helpful for those with defined benefit supers to understand their options.
What is a PSS Defined Benefit Super Fund?
A PSS defined benefit super is so named because the benefits you receive upon retirement will be “defined” or based upon final average salary (FAS), your contribution rate and the amount of time you were a PSS member. The Australian Government and other participating employers offer this kind of super fund.*
Why is it Different
Other super funds are invested for you. You can either gain money or lose money. The amount of money you eventually collect is dependent upon how much money is in your super fund. When you retire, you can collect your super as a monthly payment (retirement income stream), a lump sum or a combination of both.**
How a “Super Checkup” Could be Beneficial
There are many choices and options for you. We would be happy to have one of our financial advisors examine your situation and explain your options. You may want to keep your money in your current fund. You may want to invest it in another fund. You may want to invest it in a self managed superannuation fund.
We have a wealth of experience in helping people in Perth maximise their supers. To learn more or for an obligation-free consult, call Approved Financial Planners today: 08 6462 0888.
*Australian Government, “How PSS Works,” https://www.pss.gov.au/your-scheme/how-pss-works/#.VeVHHflViko
** Australian Securities and Investments Commission: How Super Works
https://www.moneysmart.gov.au/superannuation-and-retirement/how-super-works
