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| Autumn 2005 |
The Super Woman Workout - HESTA
If you’re confused about the new superannuation choice laws which come into effect this year, you’re not alone.
On July 1, new Government laws will give millions of Australian employees 28 days to choose where their super is invested. However, research shows many people - particularly women - are unclear about what this means.
A new national survey by HESTA, the specialists in super for health and community services, found 64% of women feel they do not know enough about superannuation to choose a fund, with that figure as high as 80% for women aged between 15-29.
More than half the 800 respondents thought they would ask a financial planner or accountant for advice but it's important to remember some of these people receive commissions for recruiting members to certain funds.
Learning how to compare funds independently will help you make an active super choice, and avoid being placed in a default fund that doesn't suit your needs.
DO YOUR HOMEWORK
HESTA has put together a 7-step Super Woman Workout to help women compare funds and take charge of their super.
STEP 1. ROLLOVER
If you have more than one super account, you're probably paying unnecessary fees. It's time to consider rolling over your super accounts into one.
STEP 2. FIND MISSING SUPER
If you have changed names, jobs or addresses in the last decade you may be one of 2.7 million Australians with unclaimed super. Check at www.unclaimedsuper.com.au
STEP 3. GET MOBILE
When comparing funds, consider whether you can stay in the fund if you change jobs.
STEP 4. NUMBER CRUNCH
What does your super fund really cost you? When you compare fees between funds, remember to check all the following: member fees, entry fees, exit fees, contributions fees, switching charges, establishment fees and ongoing management charges.
STEP 5. CHECK COMMISSIONS
Many super funds pay upfront or ongoing (trailing) commissions to people who find them new members. These funds generally charge higher fees to members to cover the cost of the commissions, so check the super fund's practices.
STEP 6. THE EXTRA MILE
Some super funds offer members access to other products such as low cost loans, banking, credit cards, health insurance and commission free financial planning services.
STEP 7. THE PAY OFF
Check what sort of returns the fund has achieved over the long and short terms, and whether you have a choice of investment options. Past performance does not guarantee similar future performance but it's good to know the fund's track record. Also check whether fees and charges are deducted before or after returns are applied to your
account.
For a free copy of the HESTA Super Woman Workout, visit HESTA website
H.E.S.T. Australia Limited ACN 006 818 695 AFSL No. 235249
Information provided is of a general nature. It does not take into account your objectives, financial situation or specific needs so you should look at your own financial position and requirements before making a decision. You may wish to consult an adviser when doing this. For more information about HESTA, call 1800 813 327 for a copy of our Product Disclosure Statement which should be considered when making a decision about the Fund.
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