5 reasons to make Prime Super #YourFundforLife

1. We care about your retirement outcome and are trying to stop the effects multiple super accounts can have on your final benefit. We know that fees and premiums associated with multiple super funds can negatively impact your final balance for retirement. But our mission is to stop this. We’re committed to continuing to educate members about the benefits of having just one account and encouraging them to consider consolidating their multiple super accounts into one.*

We’d love all members to choose Prime Super. But even if they don’t, we still believe workers will have a better outcome if they choose a fund that delivers dollars into members’ accounts. That comes from having strong investment returns and keeping the fees as low as possible. The key is you need both of these to be delivering to get the best outcome.

2. We have delivered strong investment returns. Delivering strong investment returns is an important way that we can contribute to helping our members achieve a financially secure retirement. Our MySuper investment option returned a competitive 12% to members for the 12 months to 30 June 2017, and an impressive 10.98% over 5 years and 9.36% over 7 years**

Our investment approach is different from most funds. We’re not prepared to take the same level of risk as some other funds. But that doesn’t mean we don’t perform for our members. Prime Super’s MySuper option’s strong performance has occurred with a much lower exposure to equities than our peers which essentially means our members get the returns without the risk.

Prime Super is also proud to see recent performance results from researcher SuperRatings where our My Super option was ranked in the top quartile over (rolling) 1, 3, 5 and 7 years (SuperRatings Fund Crediting Rate Survey – balanced (60-76).

Recently we also looked at how we have been able to deliver dollars into our members’ balances over seven years. Starting with an average member balance of just under $35,000 in 2011, investment returns in the MySuper option would have grown to almost $64,000. That’s roughly 1.8 times the original amount – and this is without factoring in any contributions a member may have made.

The graph above shows the growth of an initial investment of ~$35,000 over a period of seven years invested in Prime Super’s MySuper option.  The crediting rates applied are net of any applicable fees and taxation.  The balance shown is in today’s dollars and is for illustrative purposes only.  It assumes that the balance remained consistent over the period and that there were no deposits or withdrawals made during the period.  Insurance premiums or administration fees and other costs have not been applied in this calculation.  Please note - Past performance is not an indicator of future performance.

3. We offer affordable and quality insurance benefits that can be tailored to meet your individual needs. There is much talk about the impact insurance premiums are having on the final retirement balances of super fund members. It’s an important discussion that is taking place but the reality of the matter is that the law states that super funds must offer members a basic level of insurance cover when they join.

We know our members and we know that they can benefit from the level of cover they are given when they join. But we also know that it’s in our member’s best interests to have the right level of insurance for their own personal situation. It’s an important conversation that we’ll continue to have with members to ensure they consider all the insurance options for their needs.

It’s an important conversation that we’ll continue to have with members to ensure that they have the right level of cover for their needs.

4. We provide you with support where, when and how you need it. Whether it’s in person, online or over the phone, we’ve got you covered. Our team of Relationship Managers are spread across the breadth of Australia so it doesn’t matter if you’re in Sydney or Seymour – we’re available to help. And we also have a range of digital tools to make managing your super easier.

5. We make sure our fees are competitive and transparent. With Prime Super what you see is what you get. We don’t hide anything – the fees we disclose to you are the fees we charge you. Prime Super has competitive fees with the aim to reduce the cost to members.  You can refer to our Product Disclosure Statement (PDS) and Member Guide for details of fees and other costs that you may be charged as a member of the Fund. Or call us if you need help to work them out.

When comparing superannuation funds, it is important to look at net benefit – that is how your investment has performed, less any fees and taxes you have paid. Lower fees don’t always mean a better outcome.

For example: Let’s compare two funds based on fees and returns for the 7 years ending 30 June based on a $50,000 account balance:

As this example shows, Fund B might have a higher fee but with a better return, your overall position is better off than if you were with Fund A. There may be other aspects to consider when comparing super funds such as their insurance product, service to members, long-term returns and administration of the fund.

Important notes

* Before you consolidate, it’s important that you understand the following:

• Insurance benefits – Before you consolidate, you should review your insurance arrangements. Most people generally have some form of default insurance cover with their super. When you consolidate your super, your will lose your insurance cover from the funds you have consolidated. It is important that you review your level of insurance and ensure that it provides you with adequate cover for your needs.
• Exit Fees – Some funds charge exit or withdrawal fees if you move your money into another fund

**SuperRatings Fund Crediting Rate Survey – SR50 Balanced (60-76) Index, June 2017