Industry Super Funds: How They Benefit You.

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by: B.Darling
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Word Count: 451
Date: Tue, 25 Oct 2011 Time: 8:44 AM
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What are industry super funds? The first super funds in Australia are what eventually came to be known as retail funds: they were mostly begun by financial companies and mostly benefited white collar, upper middle class workers. They were also for-profit ventures. In the 1980's unions across Australia responded with super funds of their own that were not for profit and were available to anyone within their given industry. These funds have no shareholders to please: the only individuals getting a return on the fund's investments are the members. These came to be known as industry super funds and continue to this day.

Today, industry super funds are among the most common and respected retirement funds in Australia. Recent changes in the law have also opened up industry funds to all workers, regardless of one's occupation. Industry super funds developed a reputation in the 2000's for excellent returns in comparison to their retail fund counterparts. They are also known for the benefits they provide to members after they've retired. More and more Australians are choosing industry super funds to entrust with their retirement money.

So which industry super funds should you invest in? Should you invest in one at all?
Industry super funds tend to have large numbers of members, increasing the aggregate amount of money in the fund. This allows the fund to offer its members many benefits including being able to negotiate with life insurance companies for member insurance cover. Industry super funds tend to also have lower fees: meaning more money in your account. These are all advantages that industry super funds might have over retail super funds.

While the law now allows you to invest your retirement money in any industry super you choose you should consider carefully which industry super fund you go with. Many Australians purchase their life insurance through their super fund, and the terms and benefits may differ based on which industry you're in. For example, the mining industry is one of the most dangerous industries. The life insurance plan in a mining industry super fund is more suited to a miner than to a white collar worker. It may be unwise for a miner to go with a legal super fund, or for a lawyer with a mining super fund. Other industry-tailored benefits may be offered by each super fund, so it's best to do the proper research before going with a particular provider.
With a little work, you can rest assured that your retirement money is in the right place and providing the best benefits for you.

About the Author

Professional Associations Super is the industry super funds for professionals operating across a number of key industries. For a leading industry super fund contact us today.