Posted on 18/02/2019
When you’re running a business, every day you make decisions that have an impact on the future success of your operation.
But there’s one business decision that’s more important than most because it can have a lasting impact on your most valuable asset… your employees.
The default superannuation fund your business chooses on behalf of your employees, has the potential to impact the quality of life of your staff in retirement.
That’s a big responsibility on your shoulders. To help you make the right choice, here’s a brief guide on what to look for when selecting a super fund.
Dot your Is and cross your Ts
Before you begin your search, it’s important to become familiar with the rules and regulations surrounding employer default super funds.
It’s also a good idea to check the relevant industrial awards applicable to your employees, as you may be required to pay super contributions into a specified fund.
Compare apples with apples
Once you’re across the legalities, you can begin researching super funds. Make sure to compare apples with apples, and consider the following factors when weighing up the fund that will deliver the best outcomes for your employees.
Instead of just opting for the previous year’s top performer, ASIC’s Money Smart recommends reviewing a fund’s return on investment for at least the past five years, to ensure they’re consistently delivering strong returns to their members.
A simple way to do this is to look for a fund’s star rating from Canstar*, Australia’s largest consumer financial comparison site. Their highest 5 star rating for exceptional value has been awarded to just 7 funds nationally, making it easy for you to compare the best products and funds available.
Legally, MySuper products must offer insurance on an 'opt-out' basis.
When you’re comparing insurance offerings between super funds, consider the types of cover provided such as Death, Disablement and Income Protection, the levels of default cover, and the cost of premiums . Will all your staff members (permanent, part-time and casual) have access to the cover they need through the super fund’s insurance offering?
Investigate the fees your employees will be charged by the fund. Industry funds have historically charged lower fees on average, compared to the big retail super funds. The fees that a super fund charges can have a significant impact on an employees’ final retirement balance.
What else can the super fund offer you, as an employer? Online information portals, an easy-to-navigate website and functionality for making contributions, responsive service, employee seminars and events, and one-on-one consultations with financial planners are all things that may be of significant value to you and your employees.
Remember, take the time to make your decision, and seek expert advice if you’re having trouble deciding.
Statewide Super is an award-winning*, high-performing^, and local superannuation fund.
More than 22,000 businesses invest their employees’ superannuation with Statewide Super – and it’s easy to see why.
Join them, and use your super powers to shape your employees’ retirement future.