Super Choice – how can employers help their employees?
Since 1 July 2005, most employers have been required to give their employees a choice of fund for their superannuation guarantee contributions.
It is only if the employee fails to choose, or chooses a fund which cannot be used by the employer, that the employer will be able to choose the fund.
Prior to this, employees essentially didn’t have a choice and they were basically stuck with the fund their employer chose for them.
In the past decade since “Super Choice” was introduced, there has been a great deal of competition in the superannuation market given that employees can choose where to put their money.
A competitive market is good for consumers with an almost limitless choice of highly developed options for employees to choose from.
So, what does this mean for employers? Well, in the early stages of this change it was essentially an administrative burden as large companies with large numbers of staff were faced with potentially having to pay in to any number of different super funds based on their employee’s choices.
These days, this administrative burden has been significantly reduced with the introduction of SuperStream which is basically a standard for processing super payments electronically.
Many employers have identified Super Choice as an opportunity to offer their employees a more individualised option rather than then simply nominating an off the shelf industry fund.
At Hindsight Wealth we offer this service to employers. We come in, meet with each of your staff members individually and put together and present a tailored superannuation and personal insurance option.
So why bother? What’s the advantage of this approach for employer and employee? Consider the following.
•Each employee is different, their circumstances are different, their investor profile is different, they should have a super fund tailored to them and not just a one size fits all group approach.
•Group insurance offered to employees is often not appropriate to their needs. A personalised, medically and financially underwritten insurance option will serve employees better.
•Access to quality advice. Employees often make poorly informed choices regarding super and insurance. By providing a personalised Statement of Advice they will be getting quality advice suited to them.
•This is an additional service you can provide your employees. You’ll be an employer of choice and your employees will greatly appreciate having this service offered to them.
Finding the time to provide this service to your employees can be another challenge. We’re able to come out to your workplace and speak with them as a group either before or after hours or during a lunch break. Alternatively, we can arrange a group presentation at our offices in Portside.
Be curious. Be informed. Be ready for the future you.
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