Access your superannuation next to your savings in your Commbank app to easily manage your nest egg.
Essential Super is a competitive superannuation account offered by Commonwealth Bank. With it you can manage your retirement nest egg through the award winning CommBank app via your mobile, changing investment strategies easily as your needs change.
It’s also easy to take the super with you as you move from job to job, and find any lost super you may have.
|Product Name||Commonwealth Essential Super - Lifestage|
|Past 5 Year Performance||9.43%|
|Administration fee||$70.56 p.a. + 0.40%|
|Calculated fees on $50,000||$470.56|
|Insurance included||Death, TPD|
|Number of members||364,000|
Understanding Essential Super doesn’t need to be hard
Commonwealth Bank’s Essential Super gives you four investment options for your superannuation balance. You can allow them to do the work for you with the Lifestage investment option, which automatically adjusts strategies as you get older.
If you prefer to be more involved in the growth of your retirement you can also choose one of three additional funds that are structured to meet specific needs. At any time, you are able to view your investments online and make any adjustments or changes that you feel comfortable with.
What’s internet banking like for Essential Super?
The Commonwealth Bank online banking platform, NetBank, has been recognised as being one of the best in Australia for its design and ease of use. Through this platform you will also be able to access your superannuation account information, and see how your funds are growing. Other features related to the Essential Super include:
- The ability to see your recent contributions and transactions.
- Make changes in your investment strategy.
- Change your personal details as necessary.
- Consolidate other super funds into one account.
Let’s take a look at the four investment options offered by Essential Super
Essential Super is a personal superannuation product offered by Commonwealth Bank that is comprised of four separate investment options. The four investment plans you choose from include:
- Lifestage investment option. This is the default investment option, where your mix of investments will automatically adjust as your needs change with your age. This is managed for you.
- Balanced option. The balanced option provides a diversified portfolio with a range of assets and medium level of risk. This option includes 20.5% Australian shares and 20.5% global shares.
- Australian share option. This is meant for individuals who want a higher rate of return, and are in a position where they can afford a higher risk product. This option consists of 95-100% Australian shares.
- Cash deposit option. This is the lowest risk investment option, and invests in a Commbank bank deposit product.
You can change your investment choice at any time by logging into NetBank and selecting investment selection. It is important that you investigate your options beforehand, compare your choices and then make a decision based on what your retirement needs are. Keep in mind that past performance is not a guarantee of how it will do in the future.
What fees does Essential Super charge?
The default investment option, Lifestage, charges a monthly fee of $5, a combined Investment and Admin fee of 0.80%. There is an additional 0.15% fee per transaction each time you add to, withdraw from or switch to/from the Lifestage investment option.
Pros and Cons of Essential Super
- Default MySuper product available
- Switch investment options at any time
- Consolidate your super online
- Access your account easily through NetBank
- Doesn't offer as many investment options as some other funds
- Fee applied when switching investment options
What pension accounts are offered by Commonwealth Bank?
The Essential Super is not a pension account, but Commonwealth Bank does offer customers two transaction accounts that allow you to access your superannuation funds after you have reached retirement age:
- Pensioner Security Account. This everyday banking account is only for pensioners or retirees over the age of 55. You have access to your funds as needed, yet still earn interest at a competitive rate on the balance.
- Streamline Basic. The Streamline Basic is for concession card holders who are in need of a low fee account that allows them regular access to their pension funds.
When comparing various pension accounts with Australian financial services providers you can look at the features to help you figure out where you will get the most benefit for your fixed income. Check to see what the fees are, if the account is structured to be tax friendly for you and what, if any, investment options are still available to you.
Thinking about signing up? Here’s what you need to know
Essential Super is available for existing customers of Commonwealth Bank. If you wish to apply, you can do so through your existing NetBank account. You’ll then be asked for the following:
- Which investment option you choose. If you do not make an immediate choice, CommBank will automatically start you with the Lifestage investment option.
- Insurance covers. Essential Super provides certain insurance covers, but you are permitted to expand (or remove) those covers when applying.
- Beneficiaries. Be prepared to have the personal details available of any and all individuals you would like to name as a beneficiary to your super fund.
- Tax file number. It is not obligatory to provide your tax file number (TFN) when applying. However, it is helpful in tracking down any other super funds you may have with other institutions. It will also ensure that you are being taxed at a rate that is suitable for your circumstance.
- Employment details. Where you work and other details will be asked for in order to make depositing your contributions easier.
After you have submitted all of the necessary information, you will receive communications from CommBank that provides you with the details of your super fund. You will then be able to further manage your funds simply by logging into your NetBank platform.