Protecting the super balances of hard-working Australians on modest incomes has always been at the core of what we do here at Rest. Most of our members are women, and with a strong retail focus, many of our members work on a casual or part-time basis. These are just the sort of workers who may become eligible for superannuation guarantee (SG) contributions once the threshold is removed.
So we know how important low fees are for workers with modest super balances. According to SuperRatings Superannuation Market Analysis and Research Tool, which compares Rest’s Core Strategy investment option against the default investment option of all publicly available superannuation products tracked by SuperRatings, as at 31 January 2022, fees for Rest’s Core Strategy investment option are at least 25% lower than the super industry average^. And as a profit-to-member super fund, our profits don’t go to shareholders, they go to our members.
More broadly on the issue of fees, it’s worth noting the Government introduced rules in 2019 to protect young members and those with low balances from their super accounts being eroded by fees for insurance cover. Insurance cover is no longer automatic for new members if they are under the age of 25 or have an account balance of less than $6000 dollars, and certain fees are capped at 3% p.a. for accounts under that balance.
^ SuperRatings, Superannuation Market Analysis and Research Tool (SMART), 31 January 2022. Rest's Core Strategy is compared against the default investment option of all publicly available superannuation products tracked by SuperRatings. Fees are subject to change. Taxes, other fees and costs may apply. SuperRatings does not issue, sell, guarantee or underwrite this product. Go to www.superratings.com.au for ratings criteria. Ratings, awards or investment returns are only one factor that you should consider when deciding how to invest your super. Past performance is not an indicator of future performance.