Approximately 500,000 Australian employers have Industry SuperFunds as their default superannuation fund. Unless an employee nominates their own fund, their superannuation entitlements will generally be sent to the employer’s default fund. There are plenty of good reasons why Industry SuperFunds benefit both employers and their employees.
No fees for employers
Industry SuperFunds do not charge fees for joining or handling your company’s super.
Simple administration
Industry SuperFunds and their administrators work very hard to make superannuation as simple as possible for employers.
Workplace support and education
Industry SuperFunds have relationship managers who are available to assist you and your employees with superannuation issues. Many funds run an annual program of free retirement and financial planning seminars for members. Topics include member investment choice, insurance cover and the benefits of consolidating your super accounts.
Employer representation
Industry SuperFunds have equal representation of employer and employee representatives on the boards of trustees, with independent expert advisers often appointed to enhance their depth of knowledge.
A range of extra products and services
Industry SuperFund employers have access to a range of value-added products such as banking and technology services.
Fully compliant
Industry SuperFunds are fully regulated and compliant with the Superannuation Industry (Supervision) Act 1993. They are able to receive the contributions you make for your employees and offer compliant insurance cover under the choice of fund requirements of superannuation guarantee legislation.
Looking after your employees
It makes sense to choose a superannuation fund with the best range of benefits for their employees.* Some of the key benefits for employees of Industry SuperFunds are:
Strong performance^
The fund you choose for your employees can have a huge impact on their retirement. Industry SuperFunds have consistently produced strong returns for their members.^
Over the five year period to 30 June 2010, SuperRatings net benefit testing showed that Industry SuperFunds on average delivered $4.70 in earnings for every dollar taken out in fees, while retail super funds on average delivered only $1.90.^
Over a lifetime, these figures could add up to thousands more for an Industry SuperFund member.
Low fees for members**
The fees your employees pay can greatly affect their final retirement payout. On average, Industry SuperFunds charge lower fees than the average retail master trust. SuperRatings, an independent research company concluded that over a 40 year working life, Australians could be 20.8% better off in an Industry SuperFund, based on existing fee differences alone.* This is equivalent to having $84,589 more (in today’s dollars) in their superannuation account at retirement. Over a typical working lifetime, this difference greatly affects the lifestyle your employees can lead in their retirement.
Run only to benefit members
Industry SuperFunds do not pay commissions to advisors, financial planners, sales agents or insurance companies. They are designed exclusively for the benefit of members and are run only to benefit members.
Disclaimers
^Note: comparisons use an average of total fees charged and an average of actual investment returns for the default investment option of a sample of 16 Industry SuperFunds and 16 retail super funds (retail master trusts) over 5 years to 30 June 2010 (source SuperRatings, commissioned by IFS). View more information on the assumptions involved in the modelling. The amounts are not predictions or estimates of actual outcomes. Outcomes will vary between individual funds. Differences in fees or performance may change in the future and this would alter the outcome. Past performance is not a reliable indicator of future performance.
**Assumes initial salary of $50,000 and starting balance of $20,000 for a sample of 16 Industry SuperFunds and 16 retail super funds. Modelling commissioned by Industry Fund Services Pty Ltd ACN 007 016 195 AFSL 232514. View more information on the assumptions involved in the modelling.