We’ve all seen the ads – the hands cupped over each other signifying an industry super fund. However, do you know much about them? A super fund represents a powerful financial tool for Australians, offering a platform for managing retirement savings. Let’s delve into understanding industry super – the key features, advantages, and workings of an industry super fund, providing a comprehensive overview for individuals seeking retirement security.

Industry Super purpose

An industry super fund is a type of superannuation fund that is designed to cater to specific industries, such as healthcare, hospitality, retail, or construction. These funds are administered by trustees who are representatives from employer and employee organizations within the industry. The primary objective of a super fund is to provide members with financially secure retirement outcomes and access to a range of effective investment options tailored to their respective sectors.

Governance and Member Representation

One key feature that sets these super funds apart is their unique governance structure. These funds operate on a not-for-profit basis, meaning any surplus is reinvested for the benefit of their members. These types of super funds are governed by a board of trustees, with equal representation from employees and employers within the corresponding industry. This is supposed to ensure that the fund’s policies and investments align with the best interests of its members, hopefully resulting in increased transparency, accountability, and efficiency.

Lower Fees and Attractive Returns

Industry super funds are renowned for their low fees. The fees charged by industry super funds are typically lower compared to retail funds. This allows members to retain more of their investment returns, ultimately bolstering their retirement savings over the long term. Furthermore, these funds have historically delivered competitive returns, outperforming many retail funds due to their investment strategies.

Range of Investment Options

Industry super funds offer an extensive selection of investment options. This is designed to suit the diverse needs and risk profiles of their members. These options can include various asset classes, such as Australian and international shares, property, infrastructure, fixed interest, and cash. Members have the flexibility to choose between different investment strategies, ranging from conservative to growth-oriented, based on their individual preferences. This diversity provides the potential for higher returns and allows members to customize their portfolios. This can be based on the current market conditions and their long-term retirement objectives.

A super fund plays a pivotal role in maximizing retirement savings for employees across various sectors. By offering low fees, attractive investment returns, and a diversity of investment options, industry super funds ensure members can achieve financial security in their later years. With a strong focus on transparent governance and member representation, these funds provide many Australians with peace of mind, knowing their retirement funds are managed diligently for their best interests.