04.How to take action
There are steps you can take if you’re not satisfied with your super fund. The links below guide you to to information on how to:
You may also want to switch funds:
Check that choice of fund is open to you. Some people covered by industrial employment agreements, as well as members of defined benefit funds, cannot (and often should not) switch.
Work out the risks and costs of closing your existing fund or funds: This may include exit fees or the loss of life or income protection insurance (or a requirement for a medical check with your new fund).
Calculate the costs (fees) and benefits with the new fund.
If you decide to switch, complete a Standard Choice of Fund form, available from the Australian Taxation Office. Provide the completed form to your employer.
Complete transfer form(s) (also available from the ATO and your super fund), as money from other super accounts does not automatically get transferred into the new fund. The transfer process is somewhat arduous, requiring proof of identity documents certified by an individual approved to do so, such as a Justice of the Peace. A number of survey respondents complained about the difficulty of consolidating funds.
Consider getting licensed financial advice While many advisers have been rightly criticised in the past, good advice can be an invaluable investment. “My financial planner thoroughly investigated my circumstances and goals, and then made recommendations to set me up for a retirement with dignity,” said one CHOICE member. “His recommendations covered all aspects of my financial situation and were like a life plan. We meet regularly where any changes in my circumstances are uncovered and my plan is reviewed. I couldn’t have done this without him.”