If you're looking for a super fund that gives you options at every stage of life, then you might want to look into REST Super.
The REST Industry Super Fund is open to all Australians and can help support your retirement-savings efforts at every stage of life. With flexible investment options, access to financial advice and discounts on member benefits, the REST Super Fund is a viable option in the Australian market.
REST Superannuation Review
REST has a proud history of more than 25 years helping Australians generate and manage wealth. With more than two million members and in excess of $32 billion in funds currently under management, REST is one of the largest industry super funds in Australia. In fact, approximately one in six working Australians is a member of this super fund.
A multiple award-winner, REST Super is available for all working Australians. It offers 13 unique investment options to choose from including a MySuper offering for those who want their super to be as easy to manage as possible. Basic insurance cover is also available to members, while REST offers products to suit you at every stage of your life, no matter whether you’re starting your first job or just a couple of years away from retirement.
Whichever investment option you choose, REST Super aims to help you grow and easily manage your wealth. This helps you plan for a secure and comfortable retirement in the years to come.
What are the Benefits of REST Industry Super?
REST Super members are able to take advantage of a wide range of benefits, perhaps the most important of which is competitive long-term returns. Core Strategy, REST Super’s MySuper investment option, has been proven to have outperformed similar offerings from other super funds surveyed across the past five, seven and 10 years. This, combined with REST Super’s commitment to keeping fees as low as possible, helps members generate more wealth and fund their retirement.
There’s no shortage of choices available for REST Super members, as the fund offers 13 investment options to choose from. As mentioned, REST Super’s MySuper offering is called Core Strategy, and it is designed so that your superannuation is looked after for you.
- Next in the REST stable are a number of structured options, each of which offers a diversified portfolio to match the varying needs of investors. Structured options include:
- Cash Plus
- Capital Stable
- High Growth.
- Finally, there are seven member-tailored options available, allowing you to invest in single asset classes if your wish is to develop your own customised portfolio that satisfies your specific needs. Options in this category include:
- Australian Shares and Overseas Shares
- Basic Cash
- All REST Super members can take advantage of death, total and permanent disablement, and long-term income protection insurance through their super fund. This helps an increasing number of Australians have at least some form of basic cover in place, providing the peace of mind that comes with knowing you and your loved ones will be able to manage financially if disaster strikes.
- When you want to make contributions to your super, you can choose from convenient methods such as BPay, direct debit and salary sacrifice. You can also enjoy 24/7 access to your super account online, allowing you to quickly check your account balance, change your details, switch investment options and even adjust your insurance cover.
- When your life changes, such as if you move to a new job or even join a new industry, you can continue to build your super with REST. In addition, all members can also take advantage of REST Super’s expert team of financial coaches and planners to help you understand every aspect of your super and make the most of your money.
When you’re investing money in superannuation it’s important to remember that super, just like any other form of investment, has a number of inherent risks attached. REST Super spread their investments across a range of asset classes including fixed interest, property and shares. Each of these asset classes has a different level of risk, and the likely return from your investment and the chance of losing money is different for each of the 13 investment options offered by REST. Depending on the underlying mix of assets in the option you choose, there will be a differing level of risk attached.
It’s also worthwhile remembering that assets that offer the greatest potential return over a long period such as shares, will also offer a high risk of negative returns over a shorter period. With this in mind, you’ll need to choose an investment option that matches your desired level of risk.
Anyone who invests in super needs to understand that the value of investment options fluctuates, and past returns are no indicator of what future returns will be. In fact, returns are not guaranteed and you may lose money, while superannuation and tax laws may change in the future and affect your balance.
Finally, remember that just because you have a superannuation account doesn’t necessarily mean that you will have enough funds to provide for your retirement.Back to top
How Does REST Super Invest Your Money?
The exact manner in which your money is invested will depend on the REST investment option that you select. There are 13 investment options available with a different mix of underlying assets, and every option is managed by professional investment managers.
When deciding how you would like REST to invest your super, you’ll need to consider factors such as the likely return on your investment, how much risk you are willing to accept, plus the timeframe attached to your investment. Based on your assessment, you can then choose one investment option or a combination of options to create your own unique and diversified portfolio.
For example, if you’re looking at structured options, Cash Plus and Capital Stable are defensive assets, while Diversified and High Growth funds are targeted much more towards growing your wealth. In terms of member-tailored options, Basic Cash and Cash funds have a conservative investment strategy, while Australian Shares and Overseas Shares pose a higher risk for higher potential rewards.
Members who do not choose an investment option will be invested into the Core Strategy, which is REST’s MySuper investment offering. The aim of this option is to “achieve a balance of risk and return by investing in both growth assets and defensive assets. Approximately 25% of your funds are invested in defensive assets, while the rest is directed towards investing in growth assets.Back to top
Costs of REST Super
As super fund fees are typically calculated as a small percentage of your account balance, it can sometimes be easy to dismiss them as small and insignificant. However, these fees and costs can add up to a significant reduction in your overall balance when it comes time for you to retire, so you need to make yourself aware of all the charges attached to any super account.
While fees and charges can vary depending on the investment option you choose, the fees and costs for REST Super’s Core Strategy option are as follows:
- Investment fee: Estimated to be 0.7% p.a., including estimated performance fees of 0.17% p.a.
- Administration fee: $1.10 per week plus 0.1% p.a. of your account balance at the end of each month.
- Buy/sell spread: Buy spread range of 0.02% - 0.18%; Sell spread range of 0.00%.
- Switching fee: Nil
- Exit fee: Nil for first withdrawal, then $25 for each subsequent withdrawal.
- Advice fees relating to members who want to invest in a MySuper product or investment option: Nil
- Indirect cost ratio: Nil
- Other fees: These include a contribution splitting fee of $60 per split, a family law split fee of $50 per split, and insurance fees if you hold insurance cover through REST Super.
Getting Insurance Through REST Super
If you’re a new REST Super member and you are receiving a mandatory contribution from your REST employer, you’ll automatically receive a default insurance package called Basic Cover. You don’t even need to provide any health evidence in order to be approved for cover. If you do not receive mandatory employer contributions from a REST employer, you’ll need to provide health details and other underwriting information in order to apply for cover.
Designed to be flexible and protect you throughout your working life, Basic Cover doesn’t require any active involvement on your part. In fact, the cost of your premiums is automatically deducted from the balance in your super account.
Basic Cover provides three types of insurance:
- Death Cover. This provides a lump sum benefit payment (or a pension if this is the option chosen) if you die or are diagnosed with a terminal illness.
- Total and Permanent Disablement (TPD) Cover. This type of policy provides a lump sum (or a pension if chosen) if you suffer a sickness or injury that results in you becoming totally and permanently disabled.
- Long-term Income Protection Cover. If injury or illness mean that you are unable to work for an extended period of time, this insurance offers a replacement income to help you manage financially and provide for your family.
Under Basic Cover, members receive five units each of the three insurance covers. The benefit amounts and cost of cover will vary depending on how old you are.
If you wish, you can apply for Voluntary Cover for unlimited Death Cover, $5 million of TPD Cover (or $1 million if you’re more than 65 years old) and $30,000 per month of Income Protection Cover. The level of cover your policies offer will also increase each year to keep pace with the cost of living.
If you wish to cancel, reduce or increase your insurance cover, you can do so at any time.Back to top
Tax Treatment of Super
Regardless of whether you’re referring to contributions, investment earnings or account withdrawals, you’ll need to consider the tax implications of your super fund. With this in mind, you should provide REST Super with your Tax File Number (TFN)—if you fail to do so, a higher tax rate will apply to your super contributions, plus you’ll also be unable to make any personal contributions to your account.
REST will pay any relevant tax for your account to the ATO. Contributions from your before-tax salary are taxed at a rate of 15%, while no tax applies to contributions from your after-tax money. However, remember that you will have to pay extra tax if you exceed the contributions cap.
A maximum tax rate of 15% applies to your investment earnings, while withdrawals from your account can be taxed if you are less than 60 years of age. Once you reach 60, you can withdraw your money without incurring any tax.
However, it’s important to remember that the tax treatment of super is quite complex and changes regularly, it makes good financial sense to seek advice from your accountant or financial adviser.Back to top
Managing Your REST Super Fund
With REST Super, you have 24/7 online access to your super account makes it easy to review your super on a regular basis. With REST Super’s online portal, MemberAccess, you can check your balance, update your details, manage your investment strategy and make changes to your insurance cover. All you need to do is register online for a Personal Identification Number.
Reviewing your super regularly is the best way to ensure that your financial needs are being met. Remember to consider your super options when changing jobs, look into making extra contributions to help your balance grow, reviewing your investment strategy as your objectives and goals change, and adjusting your insurance cover to meet your changing needs.
REST Super offers 13 investment options to help Australians manage and grow their wealth. Consider the features and benefits of these options, plus compare them to other products on the market to ensure that you end up with the right super fund for your financial goals.Back to top
REST Super Awards
REST has a wide range of award-winning products and services, including:
- Money Magazine - Fund of the Year 2014 and Pension of the Year 2014
- Chant West Apples Fund Rating - 5 Apples out of 5 2007-2013 for REST Industry, REST Personal and REST Pension
- The Heron Partnership - 5 Quality Stars 2013/14 for REST Super, REST Personal and Acumen
- AFR Smart Investor Blue Ribbon Awards - Industry Fund of the Year 2009 and 2010
MySuper and Choice
MySuper is a low-cost super account which will eventually replace existing default super accounts. From the 1st January 2014, employers need to make super contributions to a fund that offers a MySuper product for employees who have not selected a preferred fund. REST is authorised to offer these types of funds to employers.
A Choice product is an option from REST which is not a part of MySuper. REST offers flexible options with their Choice products but they cannot be used by employers as a default fund for employees who haven't set a preferred fund.Back to top
Products Available From REST
REST Industry Super offers a range of products designed to support members throughout their working life and also during retirement. They offer five main super products.
1. REST Super
This account is open to anyone and features insurance options, estate planning and online access. Members will get to choose from 13 investment options and other member services such as investment updates, access to financial education and discounts on member benefits.
2. REST Corporate
This product offers salary-based insurance and can be accessed through your employer. Members can enjoy flexible options for Death Cover, Total and Permanent Disablement and Long-Term Income Protection Cover. Members can tailor their super account by choosing from 13 investment options.
3. REST Select
This is not a MySuper product, but it does allow members to select flexible insurance options. The increased flexibility comes along with the features of the other super products from REST, including a choice of 13 investment options, online account access and financial advice.
This super product offers a fully tailored solution where members can access financial advice, low rate home loans, and discounted insurance and banking options. Members tailor their insurance and investment options from REST's extensive range, all with minimal fees.
5. REST Pension
This super product suits retirees or those making the transition to retirement, and features a regular income stream and tax concessions. You can choose your payment frequency and access REST's standard range of benefits including the choice between the 13 possible investment options, online access and estate planning.Back to top
Features of Rest Superannuation
The REST Super Fund offers products with a range of features that suit a variety of different lifestyles.
- Access. REST offers online account access with all of their super products, allowing you to tailor your investment options based on your balance.
- Contribution choice. You have a few options available to you depending on how you want to make your super contributions, including BPAY, direct debit and salary sacrifice.
- Low fees. Industry Super Funds tend to have lower fees, and REST is no different, with their products offering competitive fees that benefit members.
- Information. Members can also access free financial advice and access to financial education, calculators and workshops, as well as regular investment updates to keep you informed about your super investments.
- Keep your fund for life. With REST Super, you can keep your fund for life and bring it with you as you move jobs. Their range of super products will suit you at different life stages, and you can receive income from REST as you enter retirement.
- Member benefits. Members also have access to an exclusive range of benefits which include travel insurance discounts, corporate health cover rates, and low cost banking with ME Bank.
Who is REST Super Suitable For?
REST is open to all Australians but is the industry super fund for the Retail Employees Superannuation Trust. You do not have to be part of the retail industry to be a member, and their range of products suits people at all stages of life.Back to top
How to Compare Super Funds
To find the right superfund to suit your needs you should compare your options online and see what's available. You should take into your account your age, employment status, and also the industry you're working in. When comparing super funds online, here are a few points you should remember:
- Take a look at all the fees associated with the product you are looking at, including exit fees, switching fees, admin fees and investment fees. Your super account may be with you for life and excessive fees could seriously hinder your retirement savings.
- You should also check their flexibility when it comes to contributions. If you want to be able to tailor the way you make your contributions and not just rely on salary sacrifices, then you should check what the super fund allows and whether you will be charged for extra contributions or splitting contributions.
- Super funds give their members varying levels of control over their investments, and you should check that the fund allows you the level of control you are looking for.
How to Apply
If you've compared your options and decided that REST is the super fund for you, then you can follow these steps to open an account.
- 1. Visit REST's website and download the PDS to read through all of their terms and conditions.
- 2. Fill out the application form at the end of the PDS and return it to your employer (if applying through your work) or through a REST customer service representative.
- 3. You will need to provide personal details, financial details, your employment details and your Tax File Number.
If you are not applying through an employer then you will have a 14 day cooling-off period to confirm that you are happy with the fund and that it meets your needs. If you cancel your application during this period you will only be charged government taxes if they apply.Back to top
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