What is a retail super fund?
Retail super funds are run by financial departments and banks.These superannuation funds are run by ANZ,Westpac,ING, Suncorp, CommonWealth Bank and other Australian banks to produce a profit for their shareholders.
There are various investments options in a retail super fund with offering hundreds of options. The investment involve Australian shares, property,international shares, cash made up of a mixture of all these.
Initially retail super funds were developed by Insurance companies,investment institutions and banks to save people for their retirement.
What is the difference between retail and industry super funds?
Industry super funds are replacement choice to retail super funds. Industry funds are non profit and are for benefit their members. Profits made by industry super funds may be reinvested into fund or provide additional benefits and services to the fund members.
Various industry super funds were initially organized to service workers in specific fields. However various huge industry super funds opened their membership up to Australian from all walks of life.
Industry super funds and retail super funds are work differently for different ambitions. They perform different performance and benefits to fund members. Past performance is not a good indicator of future performance it is good to compare your choices before making a decision between industrial or retail super funds.
Who offers retail super funds?
There are various Australian banks, insurance companies, huge investment firms who operate retail super funds. The big four banks Westpac, ANZ, NAB and Common Wealth all have retail superannuation funds options available. Other Australian Banks offer retail super funds like AMP, ING, Bendigo Bank and Suncorp. Financial companies such as perpetual, MLC and virgin money have their super funds.
Can anyone join a retail super fund?
Retail super fund are good option for everyone. Yes it is open for everyone. Traditionally funds were designed for white collar jobs who work for their companies and superannuation was invested in. Today every one can adopt retail super funds.
How does a retail superannuation fund work?
Members of a retail superannuation fund will have their money invested into investments, stocks and shares. The amount in your retail super account comes from contribution made by employer and extra money you put into it. The money is getable when you retire.
Pros & Cons of Retail Superannuation Fund
- Anyone can join a retail superannuation fund
- They usually offer a huge number of investment options
- They can offer a range of insurances on superannuation funds
- Retail super funds are accumulation funds
- They are accessible for different level of incomes and super contributions
- Accumulation funds can be impacted by global financial market
How much superannuation will you get with a retail super fund?
Your ultimate superannuation depends on following factors penned below;
- How much your employer contributed across your life
- Investment returns in your super fund
- The amount of tax you paid across your lifetime
- The amount of fees you paid on your account
- The amount of tax you paid across your lifetime.
What should you look for when choosing a friend?
You should keep in mind following question when choosing your Australian superannuation fund
- Do I own Property?
- What are my short term life goals and long term
- At what age do I want to retire
- How much will I need when I retire?
- What do I want to do in my retirement?
How do I change superannuation funds?
Changing from one super fund to another is easier than you expect. One simple choice is to contact the super fund you desire to switch and they walk you through the process of moving your super across.
How do you access your super?
You can access your super balance under specific situation
- Compassionate grounds
- Terminal medical condition
- Temporary incapacity
- Severe financial hardship
- First Home Super save FHSS Scheme
When you retire you need to assess a few things about superannuation. You determined if you desire your super as a lump sum, regular pension or a combo of both. Each super funds offer various level of access to your superannuation. you access your super after you retired.
What types of super funds are out there?
- Self managed super funds
- Corporate funds
- Industry superannuation funds
- Public sector superannuation funds