A personal superannuation account is a superannuation account that is not employer-sponsored: neither is it a self-managed superannuation fund. The type of account we refer to, is ‘like’ an employer-sponsored or industry fund, but one where the owner of the account has considerably more flexibility as to how their superannuation is managed.
A personal superannuation account is issued as a public offer fund by a retail provider, under the same strict guidelines as apply to all superannuation accounts. They are regulated under the Superannuation Industry (Supervision) – or SIS – legislation. They have a trustee who is also subjected to the supervision of a regulator. However, as you read further, the additional flexibility and the attendant benefits are apparent.
Why have a personal superannuation account?
Personal superannuation is an important structure for employees who may earn their income from various employers over time. They can use the one account to accumulate their retirement-focused wealth accumulation. That account can be nominated as the ‘choice’ fund regardless of who the employer is, paying contributions at any time. The personal superannuation account is also ideal for contracting ‘tradies’ and for professional people, who can have their principal make the contributions appropriately, to the one fund.
This process reduces the risk of having more than one superannuation account, reducing the overall level of administration fees payable.
Personal ‘choice of Super’ and portability..
Choice of super is helpful in a changing work environment, allowing the one superannuation account to accumulate all of the owner’s contributions over time. The long-term value of managing superannuation in a transparent, flexible account, also serves its owner well in a stable employment situation. The alternative is to risk having multiple superannuation accounts: the risks in this are two-fold –
- losing track of where the funds are; and
- additional cost of having more than one set of administration and investment fees.
Personal control over asset allocation and features..
The owner of a personal superannuation account is more likely to implement effective strategies for managing and optimising the value of their superannuation funds. Some of the services to consider, include:-
- Accumulation strategies
- Asset allocation
- Investor risk profile
- Nomination of beneficiaries
Personalised, professional wealth management service..
The experienced advisers at Continuum Financial Planners Pty Ltd can establish a personal superannuation account/ fund for you. Depending on your circumstances and expressed needs, we have a range of options available to fulfil this need: some features that are available include –
- online facilities that are used to monitor
- their superannuation account balances; and
- transaction information; as well as
- other activity in – and information about, their account.
…and our team can advise on ways to further enhance your super for the long-term.
[Originally published in October 2012, this article has been refreshed in May 2016]