Do you trust your super fund with your savings?
Superannuation | 5/10/2018 |
8 min read
The Hayne Royal Commission has exposed a lot of poor behaviour in the financial services industry, mostly in the commercial sector, which is controlled primarily by the banks and their related businesses.
According to a survey conducted by investment platform provider, Raiz, this has made people less likely to consolidate their super with a single fund.
Instead, people are reporting an increased likelihood to spread personal financial and investment risk across multiple funds. This is despite the fact multiple accounts mean multiple fees, which results in increased costs.
Fair and square
The loss of trust in some financial institutions is understandable, but not all super funds are created equal. At Equip we pride ourselves on being fair and square. Here's what that means;
- Our strategic decisions, products and services are focused on the best interest of Equip’s members, and delivering greater financial security in retirement. Our recent merger will pass along fee reductions of $12 million to members in the 2018-19 financial year;
- Equip was recently named one of the Top 10 performing super funds in Australia for investment returns. We achieved a top ten result for the last financial year, and the previous 10 years. That means more money for your retirement.
- Equip is a profit-to-member fund. Unlike corporate funds, we don’t have external shareholders or other conflicts. That means all profits flow back to our members.
- Directors to the Equip Board are selected on the basis of the collective skills required. The board consists of three employer directors, three member directors and three independent directors. This is the government’s preferred board governance model.
- For the past three years, members who have changed jobs have told us the number one reason they remain with us is because they trust us with their retirement savings and can rely on the advice and support we provide.
A better retirement
So what does this mean when it comes to consolidating with Equip?
The short answer is it makes sense. Consolidation is generally a good idea because it;
- Reduces the overall fees you pay (especially if they include a regular flat fee deducted from your account);
- Makes keeping track of your super and financial outlook much easier;
- Provides a single set of investment choices which is easier to manage;
- Enables you to carry that single fund from job to job and into retirement;
- Provides you with access to a comprehensive range of support and advisory services to help you make the most of your super.
Consolidating you super is easy. Log into your Equip account and select ‘Find my Super’ from the drop down menu. You’ll be given a list of all your super accounts, and can combine them with the click of a button.
A quick note: If you have multiple super accounts there is a good chance you have some form of insurance with each account. Rolling your money out and closing these accounts will cancel this insurance, and means you are no longer paying multiple insurance premiums annually. You should consider the affect of cancelling insurance cover before making any changes.
This information is provided for general information only. It does not take into account your personal objectives, financial situation or needs and should therefore not be taken as personal advice. You should consider whether it is appropriate for you before acting on it and, if necessary, you should seek professional financial advice. Issued by Equipsuper Pty Ltd ABN 64 006 964 049 AFSL 246383. MySuper Authorisation Numbers 33813823017672 (‘Equip’, ‘the Fund’ and ‘the Equip Rio Tinto Fund’).