Hi, I'm a single mum and last year I had some casual work. I got some super which was quickly eaten by the insurance.. Just wondering if those fees can be stopped if not working ? Coz I thought it would only be charged for inactive months so didn't know I would have to cancel it. Now coz my account is in 0 they closed it. I'm looking for more work now but unsure if I can re-activate my old account or reapply? Is it possible to have a super account without fees or insurance? What super companies are the best? I hardly understand any of it. Can people please explain the best ways to choose the right investment options in a super account. The info I was given when I first joined didn't explain it and neither could my family stop and help me. I feel so stupid coz I don't know all these things I probably should and I'm stumbling along trying to work it out on my Own.
3 Replies
Hey IM. Don't beat yourself up about not knowing. So many people aren't across the whole super thing. I am, but that's because I've worked in the industry for a number of years.
So first: yes, you can have super without insurance. Sometimes when you apply (especially through a workplace) there is a default/automatic insurance cover that you have to actually opt-out of. If you choose to open an account through a different fund (i.e. not an employer selected fund) you can just skip the insurance option.
Fees will be charged on most superannuation accounts. Funds with lower fees are the industry funds such as Australian Super, Care, Rest etc. I'm with Australian Super and I'm very impressed with their service. As a customer, I'd recommend them. You can choose to open an account with any fund, you just give the account details to your employer. If you want to continue on with your old fund, give them a call and find out if you need to reapply or if you can simply reactivate your old account.
Investment options: easiest way is to choose a pre-mixed option. Most funds will have options such as Conservative, Balanced, Growth, High-Growth etc. Assuming you're youngish, and won't get access to your super for a while, you probably could choose a high growth option. This gives you a bigger return (usually!) but is higher risk. Over the past 8 years or so (since the global financial crisis) I've seen some pretty huge fluctuations in my super balance (this year has been especially sucky on the market), but it has continued on a generally upward trend and even having a few years off to have my daughter, my balance kept growing. What having higher returns should also do is negate the impact of fees on your account (as in, the earnings should be enough to see your account grow even taking into account fees being deducted). Obviously your balance will be low to start with, but once you get a bit in there it will start to earn more.
If/when you change jobs in the future, keep having your super paid to the same fund - it reduces the impact of fees just having the one account. I would suggest logging onto the ATO and checking for any lost super (you'll need your Tax File Number) while we're on the subject. If you've done any work in the past, there might be some there.
Feel free to keep asking questions. I'm here if you need me!
Thankyou so much :) makes much more sense.
You're welcome! I wish there was more information out there for people. It can be tricky to negotiate!