A guide to protecting your superannuation

Let's address your concerns regarding the protection and safety of your super fund.

A superannuation fund is an invaluable and tax-effective way of saving towards your retirement. Given the importance of superannuation funds, it is essential that you are informed about your rights regarding super and find answers for any questions you might have regarding it's safety. To help you get started, we've answered some key concerns you may have below.

Q: Can money from your superannuation fund be used by your employer?

A: If you are concerned about your employer being able to use money from your superannuation fund, don't be. The money that is accumulated in these funds is held in trust, which means that it is not available for your employer to use.

Q: What if your employer goes out of business?

A: There is no need to worry about losing your superannuation in the event that your employer goes out of business because your super fund will be protected even if your employer has to cease operations.

Q: Do the trustees of your super fund have specific responsibilities?

A: The trustees of any superannuation fund have to make a lot of important decisions and choices but they also need to follow responsibilities as set out by the Superannuation Industry Act. These responsibilities include:

  • Ensuring that they always act honestly
  • Investing money carefully and properly, taking professional advice if they wish to
  • Ensuring that there are adequate reserves in the fund to pay the benefits of the member when the time comes
  • Keeping the assets of the fund separate from the employer
  • Providing statistics, documentation, statements, etc to enable consumers to see how their funds are performing
  • Maintaining accurate records and accounts of the superannuation fund

Q: What are the record keeping responsibilities of trustees relating to superannuation funds?

A: There are a number of record keeping responsibilities that trustees of superannuation funds need to adhere to in accordance with the Superannuation Industry (Supervision) Act. This includes the following:

  • The maintenance of accurate records in relation to the superannuation fund
  • Ensuring that all accounts relating to the superannuation fund are kept up to date and accurate
  • Keeping copies of certain reports and maintaining records of trustee meetings
  • Ensure that the accounts are audited on an annual basis
  • File an annual return with the Australian Prudential Regulation Authority

Q: What do trustees have to take into consideration when choosing superannuation funds?

A: Under the Superannuation Industry (Supervision) Act, trustees are asked to take into consideration a number of different things with regards to superannuation funds. This includes:

  • Risks and returns. Trustees are asked to take into consideration the risks and the likely returns that can stem from investments taking into account the fund objectives and the investment strategy
  • Diversity of investments. The Act asks trustees to consider the variation and diversity of the investments in the fund's portfolio e.g. looking at spreading investments across different asset classes to reduce risk rather than having all of their eggs in one basket
  • Liquidity. Under the Act, trustees are also asked to take into consideration the liquidity of the investments in the funds based on its cash flow requirements
  • Meeting liabilities. Trustees are also required to take into consideration the needs of the superannuation fund in regards to being able to meet its current, as well as its possible future, liabilities

Seeking professional advice? Get in contact with an advisor today

Compare your super options today

Name Product Past 1 Year Performance Past 5 Year Performance Calculated fees on $50,000 Insurance Included
Death, TPD
Earn a Retirement Bonus of up to $4,800 when you open a new Income account. T&Cs apply.
Death, TPD
Earn Velocity Frequent Flyer Points for making contributions to your super. T&Cs apply.
Death, TPD, Income Protection
Choose between 14 different investment options, including a socially responsible option.
Death, TPD, Income Protection
Enjoy discounted rates on banking products with ME Bank and health cover with GMHBA health insurance.
Death, TPD
Easily access your super account information using the Commonwealth Bank NetBank app and track recent contributions and transactions.
Death, TPD, Income Protection
Socially responsible and ethical investment options available.
Death, TPD
Pay no entry, exit or switching fees and enjoy a range of different investment options with QSuper.
Death, TPD, Income Protection
Get access to one-on-one professional advice at no additional cost.
Death, TPD, Income Protection
Choose investment options that align with your personal values.
Death, TPD
Access offers, deals and discounts through the BT Super Benefits Now program.
Death, TPD, Income Protection
Enjoy discounted health insurance with HCF.
Death, TPD
Get fee-free advice on your superannuation as a BUSSQ member. T&Cs apply.
Death, TPD
Receive a complimentary financial planning session with a Suncorp financial planner.
Death, TPD, Salary Continuance
Enjoy discounted rates on banking products with ME Bank.
Death, TPD
Access simple personal advice at no cost.
Death, TPD
Gain access to lifestyle offers and benefits on NAB financial products and services.
Death, TPD, Income Protection
Earn rewards and vouchers through the AIA Vitality program.
Death, TPD, Income Protection
A flexible industry super fund for people who work in Australia’s higher education and research sector.

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Disclaimer: Performance, fees and insurance data is based on each fund's default MySuper product. Where the performance, fees and insurance data for the MySuper fund vary according to the member's age, results for individuals between 40-49 years of age have been shown. This article is general advice. You should consider your own personal circumstances before deciding if a superannuation product is right for you. Superannuation is a long term investment and past performance is not indicative of future performance.

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