5 things to consider when choosing a super fund for your employees

Tagged in:

Choosing a default super fund for your staff is a big responsibility. Making the right decision now could make a big difference to the financial future of your people.

business woman in meeting

Does the type of fund align with your company values?

Not all super funds are set up in the same way. Retail super funds are usually run by banks or investment companies. The company that owns the fund usually aims to keep some profit. 

On the other hand, profit to member super funds typically put the profits back into the fund and don’t pay money out to shareholders. Examples of this include industry super funds or some corporate super funds, such as TelstraSuper.

If your organisation has strong environmental or social values, you may also like to consider what approach a super fund takes on sustainability. While some funds may have specific “sustainable” investment options, others will apply an environmental, social and governance (ESG) lens to all their options.

TelstraSuper CEO Chris Davies suggests an example of an ESG lens can be gender equality.

“As large investors, super funds have the ability to influence,” says Mr Davies. “This includes promoting gender equality in the companies in which funds are invested or encouraging diversity on an organisation’s board of directors.”

Ask if the fund you’re considering has a sustainable investment policy or a climate change action plan that you can view.

How do the fees rate in relation to investment performance?

This is called the net benefit, and it looks at the growth your super is providing in returns once the fees and costs are taken out. It is also worth looking at the performance of several investment options such as conservative, balanced, and growth.

“High fees can be fine if the returns are equally high,” says Mr Davies, “the net benefit figure is going to give you the most accurate picture of how a fund is (or isn’t) delivering for its members.”

Ask the fund to show you investment returns for the key options over 3, 5, 7 and 10 years. 

Could the super fund help differentiate you as an employer?

From member education sessions to tailored insurance plans, super funds can offer a range of services that help attract and retain talented employees to your business.

For some organisations this can be providing staff with financial education sessions on topics like budgeting, buying a home or debt management.

Other organisations may choose to pay for employees’ life insurance (also known as death cover) or income protection insurance (income cover) available inside super as a way to strengthen the employee value proposition. Not all super funds offer these product features, so make sure you find out what’s available and how it can work for your organisation.

Ask how the fund can work with you.

What services will be available to you as an employer?

Whether you have five employees or five thousand, super can seem complex. Look for a super fund where you’ll be more than just a number, with dedicated support and easy administration. Many super funds will even offer employer specific education like briefings on legislative changes.

Partnering with a super fund that gives you confidence is vital. If something goes wrong, can you pick up the phone and get immediate help? If you can’t, it might be time to reassess.

Ask how your account will be managed and what support is available.

What is the member experience like?

Whether it’s 24/7 access to online services or the latest tools and calculators, choosing a super fund that provides strong service can impress your staff and set them up for a brighter future.

“As well as a range of self-help online tools, TelstraSuper provides members with simple advice about their account as part of their membership – there’s no additional cost,” commented Mr Davies. “Getting advice early could make a big difference to your retirement savings over the long-term.”

Ask what sort of services can be provided and if they’re included in the standard fees and costs or will cost members extra.

About TelstraSuper

TelstraSuper is an award-winning profit-to-member fund that offers employers a superannuation plan to support and nurture their number one asset, their employees.

Insurance with a “best-in-industry” award, the option for employer-paid premiums as an added employer benefit, great performing investment options over the long-term, and tailored financial education are just some of the services TelstraSuper offers. TelstraSuper's vision is to give members and their families the confidence to enjoy a better future than they ever imagined.

TelstraSuper welcomes employers to join its corporate plan. Contact our team to learn about partnering with TelstraSuper on 1300 544 889 or [email protected]


This article contains factual information and general advice only. It has been prepared without taking into account your individual objectives, financial situation or needs.
Past performance is not a reliable indicator of future returns. An interest in TelstraSuper is issued by Telstra Super Pty Ltd ABN 86 007 422 522/AFSL 236709 as trustee for the Telstra Superannuation Scheme ABN 85 502 108 833

Any general advice has been prepared without taking into account your objectives, financial situation or needs. Before you act on any general advice, you should consider whether it is appropriate to your individual circumstances. Before making any decision, you should obtain and read the relevant Product Disclosure Statement and Target Market Determination or call us on 1300 033 166 for copies of these documents. You may wish to consult an adviser before you make any decisions relating to your financial affairs. To speak with an Adviser from TelstraSuper Financial Planning call 1300 033 166.