Are you looking for a super fund that offers multiple investment alternatives?
The Motor Trades Association of Australia Superannuation Fund (MTAA Super) first saw light of day in 1989, upon its establishment as a trust deed. A corporate trustee, MTAA Superannuation Fund Private Limited, manages the fund on a day-to-day basis. This trustee holds a valid Australian Financial Services Licence. The trustee of MTAA Super received an RSE Licence in February 2006. APRA registered MTAA Super in March 2006.
MTAA Super plays a vital part in sponsorship arrangements of V8 Supercars Australia. Through this it aims to develop a strong communication platform with young members who are not usually aware of their superannuation. It also encourages young minds into retail motor trades and to supports existing apprentices.
MTAA Super lets you convert your superannuation fund into a pension fund when you retire, giving you easy means to a steady source of income.
Why MTAA is popular
- AIST Awards, 2015. MTAA Super awarded Best B2B Campaign for its integrated Clearing House campaign
- Conexus Financial Superannuation Awards, 2015. MTAA Super was awarded Fund of the Year - Medium
Helpful information about MTAA that you need to know
MTAA Super functions as an industry-based superannuation fund for the motor trades and allied industries. However, it is open to all Australians. Since this is an industry fund, it does not incur costs such as shareholders’ dividends and advisers’ commissions, which enables it to run solely for the benefit of its members.
Its investment managers include the likes of Macquarie Investment Management, Colonial First State Asset Management, Bennelong Australian Equity Partners, Vinva Investment Management, Wellington International Management, AllianceBernstein and Pareto Investment Management.
As an MTAA Super member you get various investment options to choose from, which you can select based on aspects like exposure to risk, desired returns and life stage.
What’s internet banking like for MTAA?
MTAA gives its superannuation members free access to its online platform. The online system lets you check your account balance, change investment options, view details of contributions and deductions, view annual statements, submit your tax file number and consolidate your super.Back to top
What super funds are offered by MTAA?
As an MTAA Super member you get to choose from investments in various assets classes. While you get four pre-mixed options, you can also choose from four different asset classes.
- Conservative. The conservative option is ideal for people who wish to take no more than an average level of risk. This low to medium risk option aims at seeking stable returns through reduced risk exposure in a short to medium term. The minimum suggested time frame for investing in this option is four years. While a significant portion of this portfolio goes towards cash investments, it also invests in Australian fixed interest, overseas fixed interest, Australian equities, international equities, infrastructure, property, alternatives credit and private equity.
- Income-focussed. The income focused option comes with medium to high risk. You should ideally stay invested for at least three years.This option aims to deliver a suitable income yield, while balancing growth and stable returns. It invests considerably in overseas fixed interest, Australian equities and international equities. Part of the portfolio also goes towards cash, infrastructure, alternatives credit and property.
- My AutoSuper (Balanced). This medium to high risk option is ideal for individuals who can stay invested for a minimum period of seven years. Through a balanced exposure to risk, this option aims to generate medium to high returns in the long-term. A considerable portion of the investment goes towards Australian and international equities, followed by infrastructure, cash and property. Private equity and alternatives credit also make the cut in a small way.
- Growth. The recommended minimum investment period for this high risk option is 10 years. This option aims for high long-term returns through controlled risk exposure. If you’re willing to take above-average risk, this option may work well. A significant portion of its investments are in international and Australian equities. Infrastructure and cash are next in line, followed by property, alternatives credit and private equity.
- My Choice options. The different asset classes you can choose through the My Choice options include Australian Shares, international shares, diversified fixed interest and cash.
What pension accounts are offered by MTAA?
The MTAA Super Pension account gives you the certainty of a regular income even after you retire.
- Ways to fund the pension account. You can transfer the balance from your MTAA Super account, you can rollover balances from other super funds or pension accounts, you can add proceeds from the sale of a small business and you can also add certain disablement amounts on settlement of a disability claim. Since you cannot add funds to the account after pension payments begin, you may want to consider consolidating your accounts ahead of time.
- Payment amount. You get to decide how much pension you wish to receive in a year, every financial year. While the government sets a minimum amount that you should receive as pension each year, no limit exists on maximum payments.
- Payment frequency. You can choose to receive pension payments fortnightly, monthly, quarterly, half-yearly or yearly. Changing the frequency of payments is easy.
- Length of term. Factors that affect the length of the pension term include the starting amount, size of pension payments, any lump sum payments you receive, returns on investments as well as fees and taxes deducted from your account.
- Investment options. You can choose from seven different investment options. If you don’t select any, the default investment option is conservative.
Thinking about applying? Read this first
You can submit an online application to become a personal or employer-supported MTAA Super member. You can also download an application from the MTAA website and send the completed form across via mail. MTAA lets you join the fund at different stages.
- When you start working
- When you change jobs
- When you start planning for retirement
You may also have to complete and submit other forms, which include:
- Rollover form
- Notification to employer: Choice of fund form
- Member investment choice form
To become a part of the MTAA Super fund you have to meet some basic eligibility criteria:
- You are a resident of Australia
- You have a tax file number
To open a pension account you have to meet these criteria:
- You are over 65 years of age; or
- You are of preservation age and have retired
- You have a minimum of $10,000 to invest
Once MTAA opens your new account, you can use its online platform to make changes to personal details, details of beneficiaries as well as investment options.
Becoming an MTAA Super fund member can be worth your while, given the investment options it offers. However, since you can find other superannuation providers with similar offerings, make sure you compare a few.