New fund FairVine Super wants to tackle the superannuation gap
The fund charges no fees while members are on parental leave, and offers easy contribution splitting between partners.
New super fund FairVine Super wants to level the superannuation playing field between men and women and tackle the super gap. The super gap is the difference between what men and women retire with, and sees Australian women retire with 40% less in their super than men.
There are a few things that contribute to the super gap. The ongoing gender pay gap between working men and women is one key factor, and the fact that women take a lot more time out of the workforce to raise a family is another.
"The current system is failing women tremendously, and it's a blind spot that's leaving women at far greater risk of poverty and homelessness when they retire," said executive chairwoman of FairVine Super Sangeeta Venkatesan.
"Women shouldn't be penalised for having children or making unpaid contributions to their family. This is something we need to address now before the next cohort of women follow the current generation into serious financial hardship."
Unique features to help Australian women grow their super
In light of this, FairVine Super has designed a new super product to help Australian women increase their super balance. The fund charges no fees while members are on parental leave, meaning their super balance won't be eaten away in fees during a time when they're not receiving superannuation guarantee payments from their employer.
The fund also offers a feature called FairShare, which makes it easy for members to split their super contributions with their partner.
"One of the big imbalances typically occur when a couple has a baby. This often means switching to a single-income household, but the superannuation usually stays with the working partner. This sets the non-working partner – who is usually a woman – up for failure when it comes to retirement, particularly if she takes an extended amount of leave and/or has multiple kids," said Venkatesan.
"Our newest feature, FairShare, makes it easy to split super contributions between spouses, enabling couples to do the right thing by their lower-earning or non-working partners. We've taken the hassle out of this process by automating it through the FairVine Super member portal."
FairVine Super also offers a range of ways that members can consistently add more to their super while they're young, to ensure they retire with more. Members can opt to have everyday purchases rounded up with the remaining change added to their super. Plus, members can earn a small rebate on purchases made through selected retailers with the money going directly to their super via the FairRewards feature. Some of the eligible retailers include THE ICONIC, Menulog and Microsoft.
The fund offers two investment options, a balanced option and a growth option, with a flat fee of 1.2%. This means if you had a $50,000 balance you'd pay $600 in fees that year.
If you're looking for a new super fund, make sure you compare your options before making the switch.