From 1 July 2005, most employees have been able to choose the super fund that receives their compulsory employer contributions. On this point though, according to a 2014 Financial System Inquiry report*:
‘Around 20% of employees can’t choose the super fund that receives their compulsory employer contributions. This affects employees with a super fund nominated in an enterprise agreement, a workplace determination or a state-based award. These exemptions contribute to employees having multiple super accounts and paying multiple sets of fees and insurance premiums, which reduces retirement income. For some people, lack of choice contributes to disengagement with super.’
A recently legislated Bill^ seeks to address this issue: Employees can choose their super fund where they are employed under a workplace determination or enterprise agreement made on or after 1 January 2021.
In this video, Jason Silva discusses the paradox of choice—importantly, when considering this in terms of choosing an appropriate super fund (e.g. there are# 35 industry funds and 105 retails funds), we can help.