Established in 1989, Legalsuper are the industry super fund for the legal community. About 40% of people working in Australia’s legal services industry are a member of legalsuper.
Industry super funds don’t pay commissions to agents or advisors, are low on fees and provide a basic level of insurance to members. But you don’t have to be a solicitor or barrister to join, all Australians can save and plan for retirement with legalsuper.
A closer look at legalsuper
Legalsuper offer a superannuation and two pension products. All legalsuper funds and accounts provide you with choice over how you invest your money.
You can mix and match your investments from up to 12 different assets classes in addition to the legalsuper Direct Investment Option. The legalsuper Industry Fund and Personal Plan also offer a generic level of Death and TPD cover.
What’s internet banking like for legalsuper?
Legalsuper give you an online platform you can use to manage your fund. Login to legalsuper MemberAccess to view account balances and investments, update details and manage your investment options.
What super funds are offered by legalsuper?
Legalsuper Industry Super Fund
- Investment options. You must choose to invest in either one or mix and match from 12 different asset classes as well as the Direct Investment Option from legalsuper. Direct Investment gives you access to trade securities on the S&P/ASX 300 index, Exchange Traded Funds, Listed Investment Companies and term deposits. You can change your investment choices one a week as many times as you like.
- Growth assets
- Domestic shares
- International shares
- Property
- Alternative assets (for example: infrastructure, private equity investments, credit instruments and hedge funds)
- Defensive assets
- Fixed interest investments (for example: government & corporate bonds, bank bills, term deposits and debentures).
- Cash investments.
- Fees. Administration fee: $1.30 p.w. plus a fee of 0.29% of your chosen investment options. Investment fee: 0.13% - 0.86% p.a. depending on your choice of investment.
- Insurance. Legalsuper fund members are covered for Death and Total & Permanent Disability (TPD). The benefit is reduced as your age increases. Self employed members are covered for Death and TPD up to $250,000.
- Extras. Get access to low cost banking products with ME Bank, free legal seminars at your workplace, discounted life insurance and financial planning.
- Eligibility. You can apply for this super fund in your own name or in the name of a spouse. Make contributions on your spouse’s behalf and benefit from tax savings.
What pension accounts are offered by legalsuper?
Legalsuper offers two types of pension accounts: a transition to retirement account and a standard pension account.
Legalsuper Pension Account
This pension account pays you a regular income from your superannuation fund and acts as an investment account you can use to generate income. Apply for a pension account if you’re retired and you have at least $20,000 of unpreserved funds from your super.
- Investment options. Pension account holders get access to the same investment options as legalsuper fund members. If you’re an existing legalsuper fund member, you can choose to roll over your investment options when you transition to a legalsuper pension account.
- Fees. Fees can include, the administration fee: $1.30 p.w. plus an indirect fee of 0.29% and investment fee: 0.13 - 0.86% p.a. depending on your investment choices. Consult the product disclosure statement for a full list of fees and charges applicable to this account.
- Pension payments. Choose how often your pension is paid to you: yearly, half yearly, quarterly, monthly or fortnightly.
- Tax. All pension payments from your super fund are tax free once you reach the age of 60. Investment earnings on your investment earnings are also tax free.
- No insurance. You don’t get covered by the generic level of cover when you open a legalsuper pension product. You can add insurance to this cover for an additional premium.
Legalsuper Transition to Retirement Account
The legalsuper Transition to Retirement Account can pay you a regular income from your super once you’ve reached your preservation age and you’re still working. The Transition to Retirement Account offers the same features as the legalsuper Pension Account with the exception of how tax is calculated for people under the age of 60. While part of your pension payment may be tax free, part may be charged at the marginal tax rate.
- Tax benefits. Salary sacrifice part of your income while claiming transition to retirement pension to get the greatest benefit from this account.
Details you should know before you apply
You can apply to join the legalsuper fund if you can answer yes to one of the following:
- Your employer uses legalsuper as their default fund.
- You choose to have your compulsory employer contribution paid into the legalsuper fund.
- You’re self employed and you choose to contribute to this fund.
You can join this superannuation fund by following the links and proceeding to the online application.
Am I eligible for a legalsuper pension?
Check to see whether you’re eligible for a legalsuper pension account below:
Legalsuper Pension
- You have a minimum unpreserved super balance of $20,000
Transition to Retirement Pension
- You’re over the age of 55
- You have at least $20,000 to invest from your super fund
- You’re working.
You don’t have to be a member of Australia’s legal community to join legalsuper.
If you have questions about legalsuper or their products, get in touch with us by asking a question below. We can’t provide personal financial advice but we can help with your comparison of superannuation and pension accounts.