Getting to know your super fund and what it can do for you

Superannuation is a home for your retirement savings, but it can do much more for you than that.

How much more depends on your super fund because some funds are doing a better job of engaging and supporting members than others.

Like Oliver Twist, many super fund members are lining up for more.

That much was evident from the Investment Trends’ 2023 Super Fund Member Sentiment and Communications Report. It found members are more engaged with their super than ever, and this engagement has led to a surge in the intention to switch super funds, with 9% of those surveyed indicating they plan to move funds within the next 12 months. 

The report also found that members want more information about their funds’ ESG investment philosophy and are more likely to desire engagement with their super via a mobile app rather than a website for the first time in the survey’s history.

 The Chant West award for member services in 2023 went to Cbus while SuperRatings gave its service quality award to Vision Super.

So how does your fund stack up? Here are some things to look for.

Education

Super is not something that is taught at school or discussed around the kitchen table, so understanding how super works and how to make the most of it can be a steep learning curve.

The learning starts with choice of fund and investment options, reaches a climax when you are planning for retirement and continues as you manage your retirement income and estate planning.

As the super industry matures, member education is an area where the best funds can differentiate themselves from the rest. Education is being delivered via online articles, podcasts, videos and webinars as well as face-to-face seminars around the country.

For example, HostPlus offers a comprehensive financial education program that includes how-to videos on topics from how super works, through making contributions and choosing an investment option to insurance, consolidation and retirement. The fund also hosts regular webinars and provides a range of blog posts.

Calculators and other tools can also help your retirement planning. For example, TelstraSuper provides some excellent retirement planning calculators while REST has a First Home Super Saver calculator and AustralianSuper offers a tool to calculate the most effective way to contribute to super as well as a risk profiler.

Advice

After seeking out information and educational material, people often want more personal advice to help them grow their super and manage the transition-to-retirement phase.

Super funds are catching on, and many are beginning to improve their advice offerings as a way of retaining members.

Advice is offered on a scaled basis, beginning with simple advice over the phone about your account, the range of investment options it offers, contribution strategies, how to choose the most appropriate insurance cover and nominating beneficiaries.

At the top of the scale, some funds offer access to comprehensive financial advice from licensed financial planners on a fee-for-service basis.

Some funds, such as UniSuper, have in-house teams of advisers available for face-to-face appointments. Others, such as Cbus, outsource to an approved certified financial planner in your area.

In many cases, the fee for advice is deductible from your super account balance.