Almost 11 million Australians are members of an Industry Fund. Industry funds have proven to be consistent performers in delivering returns over the long term.
As Industry Funds have merged and grown larger, their ability to provide services to a much larger number of members has become harder. Most offer Financial Advice in some form, but often on a smaller scale smaller than there membership needs due to the cost to do so.
Many members of these funds will need Financial Advice to support them when the time comes for them to retire. Often these members will look to their Superannuation Fund to get Advice – what does Advice from an Industry Superannuation look like?
Some offer no advice, whilst some offer simple advice over the phone or by video, with a few offering Comprehensive Advice. In most cases all types of Advice is provided by employees of the superannuation fund, which means they are not able to provide Independent Advice, and it is unlikely they will advise their member to roll money out of the fund the Adviser works for to a competitor fund.
Usually, the simple advice over the phone or video will be offered at no additional charge to the fees already paid by the member within the fund. Comprehensive Advice however, is required by the regulator to be charged for separately to the member by the fund.
What is the difference between simple and comprehensive advice?
Simple Advice might cover single issues such as changing your Investment Option, or contributing more money into super and limited only to your interest in the superannuation fund. Simple Advice cannot take into consideration your broader overall financial situation or your partners superannuation if it is held in a different super fund.
Comprehensive Advice can consider both yours and your partners overall Financial situation. The cost of obtaining comprehensive Advice from an Industry Fund ranges from $3,500 – $8,000, depending on the complexity of the Advice as its based on a Fee for Service. The average fee charged for Comprehensive advice in the sector is around $4,500.
At Curve Wealth we are Independent Advisers and the cost of a Comprehensive Retirement Plan for a couple with an average financial situation would be around the same fee charged by an Industry Fund. The difference being at Curve Wealth our Financial advisers are Independent and will advise you on what the most appropriate Superannuation Fund be in based on your needs – not based on who we are employed by.
In short the Advice Industry Funds offer, is sound but not independent. If you walk into a Westpac Branch to open an account they are not going to open you a CBA Account.
At Curve Wealth for the same fee, you would pay for Comprehensive Advice from your Industry Fund, you can get Independent Advice from us which you can be assured will look at all the options for your Superannuation and most appropriate place to invest it.
The first step is to have a chat with us over the phone. This gives you a chance to find out how we work with our clients and our approach to the Advice Process. If we sound like we might be a good fit for you then the next step is to book in for a Financial Roadmap Meeting with us.