Industry super funds in Australia offer several benefits compared to other types of super funds, such as retail super funds. Some of these benefits include:
Low Fees
- Industry super funds are often known for their lower fees compared to retail super funds. This is because they are typically not-for-profit organizations, so they aim to maximize returns for their members rather than generate profits for shareholders.
Strong Performance
- Historically, industry super funds have delivered strong investment performance. This can be attributed to their focus on long-term, diversified investment strategies aimed at providing competitive returns to their members.
Governance
- Industry super funds are governed by trustee boards with equal representation from employers and employees. This structure ensures that decisions are made in the best interests of members and that there is a focus on member outcomes rather than profit maximization.
No Commissions
- Industry super funds do not pay commissions to financial advisors or brokers for recommending their products. This helps ensure that members’ savings are not eroded by unnecessary fees.
Insurance Options
- Many industry super funds offer competitive insurance options, including life insurance, total and permanent disability (TPD) insurance, and income protection insurance, often at discounted group rates.
Education and Advice
- Industry super funds often provide educational resources and financial advice services to help members make informed decisions about their superannuation savings and retirement planning.
Member Focus
- As industry super funds are run to benefit their members rather than generate profits for shareholders, they tend to have a strong focus on member services and satisfaction
Strong Advocacy
- Industry super funds often engage in advocacy and lobbying efforts to promote policies that benefit super fund members, such as advocating for improvements to the superannuation system or retirement income policies.
Overall, industry super funds offer a combination of low fees, strong performance, member-focused governance, and additional benefits such as insurance options and financial advice services, making them an attractive option for many Australians looking to save for retirement.
“If you want to invest ethically, one way to do it is through your super fund. The money you and your employer pay into your super account can be invested in a number of ways and you may be able to do that more ethically. So how do you choose an ethical super fund?
What is an ethical super fund?
An ethical super fund is a type of fund that aims to invest your money in a way that aligns to certain ethical standards. An ethical super fund can either focus solely on ethical investments and exclude anything it considers non-ethical, or it can offer a mix of investment options that includes some it considers to be ethical or sustainable.
In the latter case a fund may also have interests in some non-ethical investments outside of the ethical options it offers. It’s up to you to determine what type of ethical super fund you’d prefer.
There is no set global standard for what counts as ethical investments but generally they involve companies that have good environmental, social and governance (ESG) policies. They could be working in areas such as healthcare, renewable energy, recycling, sustainable products or social wellbeing and support action on climate change.
Basically, ethical investments can involve anything not considered harmful to people, animals or the planet in general.” (CANSTAR.COM – Compare ethical super funds in Australia)