21 July 2023
Starting a family made Magesh realise how important it is to be in a top-performing super fund that puts members first. When he discovered he had multiple accounts and was paying fees on all of them, he decided to roll his super into one fund with AustralianSuper.
Having multiple super funds means you could be paying multiple fees, as AustralianSuper member Magesh discovered. To solve this problem, he decided to consolidate his super funds, moving all his accounts to AustralianSuper.
Not all super funds are created equal. A fund’s overall performance can be measured by looking at net benefit. This is the investment returns minus administration and investment fees, and costs and taxes.
We spoke to Magesh in 2020. Watch his story now:
Before making a decision to combine your super, consider any fees or charges that may apply, and the effect a transfer may have on benefits in your other fund such as insurance cover. We recommend you consider seeking financial advice.
Multiple super accounts
Having multiple accounts is a common issue. In fact, as at 30 June 2022, around 3 million Australians held two or more super accounts1.
If you have several accounts and want to rollover your super, you can do as Magesh did. Contact AustralianSuper and we’ll take care of the rest.
3 things to look out for when comparing super funds
If you’re thinking of rolling over your super into one account and are comparing funds, there are a few things to keep an eye out for to make sure you’re comparing apples with apples.
Your fund will charge you fees to manage and invest your money. The amount of fees you’re charged depends on a couple of factors. These include your investment option and the type of fund you’re with, such as an industry or a retail fund. Industry super funds, such as AustralianSuper, are run for members’ benefit. Retail funds often charge much higher fees as they have a responsibility to their shareholders and a focus on profit.
The amount of fees you pay over the course of your working life can add up. This can have a significant impact on your overall super balance come retirement.
2. Long-term performance
When you’re looking at different super funds, it can be important to compare long-term performance. After all, super is a long-term investment. So be sure to check not just how the fund is performing over the short term, but whether it has a good track record over the long-term.
3. Net benefit
Net benefit is what you get when you calculate investment performance, minus the fees, costs and taxes charged by your fund. It’s essentially a truer reflection on how your super is performing, meaning, the higher the net benefit, the more your balance grows.