Retirement Savings Accounts (RSA’s)

These accounts are suitable for people with small balances in superannuation or for those whose investment term is short - those close to the redeeming age, normally over 55 years of age.

Public Offer Superannuation Funds

These are superannuation products available to any member of the public who is eligible to contribute to superannuation. This group includes Master Trusts which cater for superannuation investments.

The majority of these funds offer several investment options catering for different preferences of risk and return - ranging from capital guaranteed, balanced, diversified to growth funds. You could decide, or seek advice to help you decide, how to spread your investments over the options available. Life insurance and/or death and disability cover may be included at a cost in these funds.

Employer-Sponsored Funds

These are superannuation funds set up by the employer and usually have the employer's name in the fund's title. Either a fund manager or trustee may manage these funds. With some funds, the fund member (the employee) may not have any choice as to the types of investments made. There are, however, strict guidelines as to what the money can be invested in. Life insurance and/or death and disability cover may be included at a cost in these funds.

Industry Funds

These funds first became popular when superannuation became part of the various industry awards and were set-up for people working in specific industries e.g. health, retail, education. It is common for the relevant union to have some involvement in the management of the fund. Life insurance and/or death and disability cover is usually included at a cost in these funds.

Self-Managed Superannuation Funds (DIY Funds/ SMSF)

Those who believe they have the expertise to manage their own investments can set up their own superannuation funds. This is a complex subject and we encourage you to seek professional advice before deciding to start a Self-Managed Superannuation Fund.  Those with over $250,000 in superannuation capital could consider this option. The costs associated with DIY Funds make it uneconomic to maintain smaller sized funds.

For more information and advice regarding types of superannuation funds, please contact your Patersons Adviser to arrange an appointment with our superannaution specialist.