What are the benefits available from a super fund?
3.10 What are the benefits available from a super fund?
Super funds do much more than just look after members superannuation monies. Most also offer insurance, finance advice, online account access, retirement products, home loans, non-super investments, access to direct shares and even shopping discounts.
Super funds can offer these benefits by setting up strategic partnership and allowances with insurers, banks, financial planners, travel companies and other product providers. Some super funds have so many features it makes them almost one-stop-financial-shops.
The battle for members loyalty has ignited between some funds that they are constantly updating their list of product features and offerings nearly every month.
To find out what funds offer which extra features, Rainmaker each year analyses the incidence of over 50 individual features ad benefits offering across more than 500 superannuation and retirement products.
They regularly find that the extra features funds offer range from call centres to online account access, insurance, smartphone and tablet apps, financial products like home loans, shopping rewards, social media presence and even shopping discounts like health insurance, travel deals and gym memberships.
But while features like being online, having a call centre, life insurance, financial planning services or retirement products are offered by almost every super fund, other features like shopping and travel discounts and general insurance are offered by only a few funds.
So the message is clear: not all funds offer everything so if there's something special a member desires they will need to compare their fund in detail.
This race to have lots of products features is why the average number of features offered by funds has increased year on year and now stands at over 20 with the feature types growing the fastest being technology-based communications and those features that reflect increased member engagement in investments and information about their portfolios.
An increasing number of super funds are offering access to cash term deposits within investment choice menus, regular investment reports and online investment switching. This reflects the growing interaction between super funds and their members regarding how the assets are invested and managed, although these features can at times make funds seem unnecessarily complex.
This technical resource is intended for the use of financial advisers only. It is current as at the date of publication but may be subject to change. This publication has been prepared without taking into account a potential investor's objectives, financial situation, needs or objectives. Before making a recommendation based on this material, you should consider its appropriateness based on the client's objectives, financial situation and needs. Rainmaker Group is not a registered tax agent under the Tax Agent Services Act 2009. Your client should refer to a registered tax agent before relying on information published herein that may impact their tax obligations, liabilities or entitlements.
Last modified: Wednesday, May 5, 2021