Superannuation fund research house Chantwest has teamed up with retirement educator Bec Wilson on a new rating – the Epic Retirement Tick – and the bad news is only six out of Australia's more than 60 super funds have made the grade.
It's good news if your fund is one of the six – we'll get to those shortly – but what are the super funds being judged on?
Wilson, who is the author of How to Have an Epic Retirement, and Chantwest have assessed Australian superannuation funds against 18 criteria.
And only those funds that meet at least 12 out of the 18 criteria this financial year get the tick.
As Wilson explains:
Some funds are focused on delivering for their members as they approach and enter retirement, while others haven't made it a big priority yet. A good fund puts retirement front and centre, with the right products, support, and services to see you through the years ahead.
Wilson says it shouldn't be hard to decipher whether your fund is well set up for your retirement, which is where the Epic Retirement Tick rating comes in.
The 18 criteria include fair fees, strong retirement income, good support when transitioning out of work, and tailored investment options.
Wilson says ultimately the report serves two purposes:
1. It gives you a clear picture of how your fund stacks up against a robust set of criteria that reflect the realities of retirement in Australia today, and. 2. It sends a message to the funds themselves, showing them what matters most to you. That's an important job too – making sure every day Australians approaching retirement have a voice at the table, so you're not invisible in the system that's meant to serve you.
So which funds have made the grade, and some of the reasons why.
ART- Super Savings
It has strong long-term performance and competitive fees, including a lifetime product that pays income for the rest of your life, linked to investment performance. It also provides simple retirement advice at no additional fee and refers clients with complex needs to external advisers.
Aware Super
It has strong long-term performance and has recently reduced its fees for members in retirement. It offers simple retirement advice to members at no additional cost, both through calculators and over the phone. It also has good education resources on its website and good service levels for retired members.
Brighter Super
It has competitive long-term performance and fees, offers a pre-mixed retirement strategy with three investment options, including cash, to provide a mix of growth and stability, and has strong service levels.
Hostplus
It has very strong long-term performance and low fees, offering simple retirement planning for individuals under $500, a good digital advice tool, and strong service levels.
TelstraSuper
It has competitive long-term performance, offers an annuity and purpose-built portfolios for members in retirement to better meet their needs, and offers comprehensive advice via experienced in-house advisers.
UniSuper
It has strong long-term performance, offers an annuity product, a retirement calculator built for members approaching retirement and in retirement to check how much income they can draw, and does a good job educating members about their retirement options.
The Epic Retirement Tick report will be published annually; however, if funds proactively change and meet sufficient criteria, they will be able to earn the accolade in the interim, Wilson said.
