You may have seen recent media reports concerning industry superannuation funds, highlighting issues such as cybersecurity vulnerabilities, delays in processing death benefits, and administrative inefficiencies. I want to take a moment to directly address these developments and reassure you about the safeguards in place for your superannuation strategy.
Your Security is My Top Priority
As your financial adviser, I take the security and integrity of your capital very seriously. I want to assure you that I have not recommended any of the superannuation funds currently in the media spotlight to any of our clients. Every recommendation I make is based on rigorous due diligence, a strong focus on governance, operational efficiency, and the long-term security of your retirement savings.
For Those Considering Superannuation Options
For those of you who are not yet clients but are exploring your superannuation choices, here is a brief overview of the commonly recommended structures outside of the public industry super funds:
Wholesale Superannuation Funds
Advantages:
- Access to professional investment managers and institutional-grade investment options.
- Generally, a greater selection of managed funds, exchange-traded funds and direct shares.
- Customised investment strategies tailored to your goals and risk tolerance.
- Streamlined estate planning and insurance options.
Disadvantages:
- Less flexibility than SMSFs in terms of direct investment choices.
Self-Managed Superannuation Funds (SMSFs)
Advantages:
- Maximum control over investment decisions (e.g. property, shares, collectibles).
- Ability to tailor strategies around complex estate planning or taxation needs.
- Potential cost-effectiveness for larger balances.
Disadvantages:
- Full responsibility for compliance and administration lies with trustees.
- Requires time, knowledge, and ongoing engagement to manage effectively.
- Higher setup and ongoing costs if the balance is small (<$300,000).
- ATO regulatory oversight and penalties for breaches.
I am always happy to have a confidential conversation about your current arrangements or explore whether a wholesale superannuation fund or SMSF is appropriate for your goals.
Should you require further information about super security, please feel free to contact Peter Quinn by submitting an enquiry or calling us on +61 2 9580 9166 to book an obligation-free appointment.
The information in this document does not consider your personal objectives, financial situation or needs, so you should consider its appropriateness regarding these factors before acting on it. It is important that your personal circumstances are taken into account before making any financial decision, and it is recommended that you seek assistance from your financial adviser.