Lost half the money in my super account in less then six months!

pyro love bird on 04/03/2014 - 12:17

Hi OzBargainers!

I don't know where to go at this point and I'm turning to you guys for help.

I'm a current uni student and worked for my university and they automatically opened a UniSuper for me. They had deposited ~$450 into the super account out of my ~$2000 pay. I got a letter from UniSuper saying something along the lines of "Welcome aboard to UniSuper" etc etc. Was not sent out ANY info about account fees and other rubbish fees. About six months later after the account was opened for me, I get a statement with a list of fees, what I started off with ($450) and what I have now (~$210). Apparently the administration fees are about $55! then there's a whole list of tax fees? and some other fees to do with death and funeral… I'm only 21 I really don't need death insurance right now.

So my questions are:

  1. I wasn't notified of all these fees, is there anything I can do to claim it back?

  2. Can I close the account and withdraw whatever money there is left in it before they take it all?

  3. If I can't do 2. is there a super fund that anyone would recommend for a uni student who works very occasional casual jobs here and there. With little to no account fees?

  4. Is it even worth having a super account if I make next to nothing and I need to keep as much money as I can in my bank account to pay my bills?

Thanks in advance everyone for taking the time to read through this and/or commenting!

Have a great day :)

Financial

Comments

    • No ONE on 05/03/2014 - 19:56
      +1

      I didn't understand even one f**n word you said

      • [Deactivated] on 08/03/2014 - 10:30

        Dyslexics of the world, untie!

  • forever saving on 04/03/2014 - 16:30
    +3

    Hey OP,

    Not sure what bank you're with but I'll share anyway. I use Essential Super which is the MySuper default fund for Commonwealth Bank - this means it appears in your netbank so you can see exactly how much is in there.

    It is also designed for younger people as the fees are extremely low. It's $5 month for administration + insurance fees is minimal as the cover is lower.
    You can adjust your asset allocation the way you want as well.

    For me it's easy to use and see, since I use CBA. Maybe take a look on their website and judge yourself.

    • pyro love bird on 05/03/2014 - 02:08

      Hey forever saving (loving the name btw!)

      I'm also with combank. And everywhere I've asked they're just trying to sell their product, which I understand, but I just want the best one for me.

      Since you have a fund with them, can I ask if you've encountered any extra charges or fees at all? I don't know anything about investing/asset allocations so if they're trying to bs their way into getting me to get an account with them, its bound to work…

      But thanks though

      • forever saving on 05/03/2014 - 09:39
        +2

        You can see exactly how much you are being charged. No hidden fees.
        Taken from the online Super account which is accessed through Netbank.

        20/02/2014 Account Admin Fee -5.00
        20/02/2014 Insurance Premium -9.57
        20/01/2014 Account Admin Fee -5.00

        Asset allocation is basically where you Super is invested but since this is a MySuper fund they have the option to allocate your Super based on your age. This changes as you get older automatically.

        Generally they start you off with mostly domestic shares and gradually increase Cash investments as you get older. Of course you can manually select whenever you want where you want it to be invested.

        It's also related to Colonial First State as they are both CBA - and that has been a well performing Super company.

        If you want to make Super contributions it's as simple as transferring money into the Super account via NetBank.

        The good thing about Super is it's easily transferrable so if you don't like it just switch it out!

        • pyro love bird on 05/03/2014 - 14:25

          Fantastic! I was looking at ING Direct too, but I'm not sure. Whats the insurance premium?

        • forever saving on 05/03/2014 - 16:18

          Most Super funds come with Insurance. That's the insurance fee. So if something were to happen you would get paid out a large sum.

  • sjc88 on 05/03/2014 - 05:43

    Check your employment agreement. You might find membership with UniSuper is required under that agreement, as is the case with most higher eduction employers in Australia.

    • pyro love bird on 05/03/2014 - 14:27

      I was looking at some of my paper work and I couldn't actually find anything about that, there were things about my rights as an employee and about doing casual employment and the hours I worked and things. I'll have another look though

  • netsurfer on 05/03/2014 - 08:01
    +1

    Basically, in general, you cannot do much about super admin fees (unless you managed your own super). As you just started, the admin fees will take a big chunk out of the money you put in. The most important thing about a super is actually the return you are getting (in the long run).

    My first super was with UniSuper, that was 10+ years ago. I had no issue with UniSuper at the time because it was providing investing return around 20%, which was very good (I was getting positive return from UniSuper after tax). After I stopped working for at the University, they asked me to transfer out of UniSuper. None of my other super managed more than 10% return (some even got negative return and they still charge you admin fees).

    Also, at universities, they generally contribute a larger percentage of your pay in your super (it was about 17% when I worked there). Therefore, initially, you will feel you lose a lot of money.

    • pyro love bird on 05/03/2014 - 14:30
      +1

      Well previous posters added that ING Direct didn't have admin fees, which I was surprised about because every other company I've looked at has admin fees. I don't know what the investment rate is but I only got $15 of investment and that only happened once, I'm not sure how often I should get a return.

      Yes. I do, and it's all going into their pockets… Do you know why so much money goes into unisuper? I mean, it corners people, you get it opened for you and (from the previous posters) can't change it, they charge high fees until you have nothing left. So they'll always win..

  • bargain_knight on 05/03/2014 - 12:45
    +1

    I note that you were concerned about the tax deducted. You should get that reimbursed from the government, given that you have a low income < $37,000.

    See: http://www.ato.gov.au/Individuals/Super/In-detail/Contributi…

    Make sure you have submitted a tax return.

    With regards to fees you shouldn't have to pay full fees if your balance is under $1,000.

    Note that your insurance cover is opt out as the trustee makes the decision that all members are covered under the default policy as it is in everyone's best interest. However, you should call Unisuper to complain. They will usually refund your premiums.

    The following article is well articulated and explains the above:
    http://www.theaustralian.com.au/business/wealth/low-account-…

    You may want to raise all the above points with UniSuper.

    • pyro love bird on 05/03/2014 - 14:34

      Hi Bargain_knight,

      Yes, I am concerned, but some people on here have said that I can't do anything about it. Last time I did my tax return was at the end of the financial year, so still yet to do mine for this year. And some people have said that that protection policy in regards to having a balance less than $1000 no longer applies..

      What do I do if UniSuper doesn't want to speak to me? Or talks their way out of it because I don't understand everything about the super?

      • McFly on 05/03/2014 - 14:44

        What do I do if UniSuper doesn't want to speak to me?

        Amazed that UniSuper won't talk to you.
        I'd try speaking to someone in payroll in your organisation.
        They must have a contact at UniSuper they could contact.

      • bargain_knight on 05/03/2014 - 15:21
        +2

        Unisuper is a member's organisation. It is owned by you the members. I'm amazed they won't speak to you as they have call centers to deal with this stuff. I assume you called: 1800 331 685.

        They should help you find a suitable situation. I.e. explain you don't have much money and that the fees are eroding your balance. They should find a mutually beneficial scenario.

        You are right, low balance protection was removed from 1 July 2013. I.e. this financial year. Sorry about the misinformation.

        The main thing that will hit you are the insurance premiums. Try and get those rebated ASAP.

        You will only get your tax rebated in the tax year after you submit your tax return.

        • pyro love bird on 08/03/2014 - 04:29

          Yep, and I will be trying again on monday.

          Do you know why they removed the balance protection law?

          Thanks for your advice and help, I really appreciate it!

          Also just to clarify, I can claim back the tax deducted from my super?

        • 1ch1go on 10/03/2014 - 10:35

          Removal of member protection is because of the introduction of MySuper by the government.
          http://www.superguide.com.au/how-super-works/mysuper-funds
          With claiming tax from your super, if you earn less than $37k per year then the government will refund your contribution tax. This will be done automatically once you have completed your tax return.
          http://www.ato.gov.au/Individuals/Super/In-detail/Contributi…

  • solidice on 05/03/2014 - 15:37
    +2

    I was reading through this entire post and I am of the opinion that the OP is a little confused. If you work for a university you will paid $xxxx and then the university contributes a specific additional percentage based on what $xxxx was. University pay packets are exclusive of super, unlike say an accountants pay packets where the advertised amount may be $60 including super. So if you had an additional $450 taken out it means you either agreed to make additional super contributions, or your gross was actually $1550 i.e. what you signed in your contract and the uni paid the $450 in super to your nominated account.

    I have been with Unisuper for a long time and they are great. Very easy to contact and get information out of, in fact I was just talking to them over the phone this morning, and they already emailed me the relevant documents to fill out and send back.

    • pyro love bird on 05/03/2014 - 19:29
      +1

      I was paid thrice, and so some money was put into the super as follows:

      03/07/2013 $193.64
      02/12/2013 $170.01
      24/12/2013 $88.81

      totaling to $452.46

      Maybe you think they're great, but my co-workers and colleagues think its a load of rubbish being cornered and taken advantage of, its not particularly fair adding high fees and add-ons when we're not making much to start with.

  • 2ndeffort on 05/03/2014 - 17:06

    Could it be that some of the things you perceive as dishonest fees and charges are in fact insurances? Although it might not be important to you as a young single person, often Super includes 'Salary continuation', TPD (toatally Permanently Disabled (think car crash etc)) and Life Insurance. These might seem like a waste of money but if something really bad should happen to you and you are not able to work as a result, TPD insurance for example would come in very handy. If you have any dependents to feed/house/educate then it might be almost critical. many employers auomatically incorporate TPD and soem other insurances into their standard package for new employees.

    I pay for TPD and life insurance outside of my super and it is very expensive.

    • pyro love bird on 05/03/2014 - 19:25
      +1

      Admin fees are exceptionally high IMO, there's Group life which is deducted every month plus the tax taken off and tax adjustment whatever that is.

      Think about it this way, I had $450 in it 6 months ago and I now have about $200 left, if I wanted life insurance, or death or whatever I'll ask for it, but I didn't ask or consent to any of it. If I was making decent money it wouldn't particularly bother me, but I'm barely making anything and scraping by.

      • JayEmmGee on 05/03/2014 - 22:53
        +1

        The fees don't seem exceptionally high. Keep in mind you (along with everyone) are charged 15% tax on Superannuation Guarantee contributions from your employer. As an industry fund, UniSuper would have relatively low administration fees and the insurance was something you could have opted out of when the account was set up for you.

        You also may not have a choice of super fund as some employers are not required to give you the choice (I know the same thing happened to me when I worked for my uni a few years ago).

        • pyro love bird on 05/03/2014 - 23:08

          Well I've seen other supers that have admin fees of ~$5 and unisuper charged me around 30 a month. I was not asked if I wanted those fees nor was I aware I even had them! by the time I'd found out they had already taken off six months worth of fees…

        • Luke212 on 06/03/2014 - 10:18
          +1

          either way you don't get access to your $200 for another 40 years. and by then you won't care. because $200 will be f___ all. you will need to have saved $1M+ by then to live comfortably.

        • lisss on 06/03/2014 - 18:46

          Exactly Luke212, that's why most people don't bother complaining even if the forced super provider charges higher fees than a low income earner would ideally like. In the medium to long run it will make very little difference, so a waste of energy to complain IMO.

          Before anyone goes and does calculations to demonstrate the time value of $200 over x number of years, I would argue that in terms of the contributions you make later in life, the importance of, and return on, the contributions made during your casual/uni employment are comparatively insignificant.

        • pyro love bird on 08/03/2014 - 04:28

          Losing money is still painful to see, especially if its substantial in comparison to what I'm making. Surely if you were in my position, you wouldn't want to just flush $250 down the drain…

        • lisss on 10/03/2014 - 20:31
          -1

          I was in your position a few years ago, and I personally didn't care that much. Now I'm earning a full time wage, the piddly super contributions I got during my uni days are already insignificant.

  • mparf on 05/03/2014 - 19:35

    This is really strange, considering my mother is in the exact same position.

    When she signed a contract at the beginning of her employment, she was never given any Super options, along with the rest of the new employees.
    A new super was opened for her against her wishes, and they've only made one deposit, whereas she should have over $1600, there's only $600.
    And since i last checked a month back, $200 is missing.
    =/

    • pyro love bird on 05/03/2014 - 20:23

      Sound like she's in the same boat as me, what do you mean by she should have over $1600 but only has $600?

      • mparf on 05/03/2014 - 22:40

        She started working for xx in November, and in the past nearly 5 months, there's only been one deposit in her super account, back when she first started. Despite the super account being open for 5 months, we only received contact from them in early Feb, prompting me to check the account for her.
        From my (definitely not professional) calculations, based on what she received, in her first deposits, she should have $1600ish (based on the tax website's 9.25%), but there's only $600 in there.
        Granted, when I checked yesterday, there's $400 in there now, with the fund stating that the rest has gone to administrator fees and other bull sh*t.

        • pyro love bird on 05/03/2014 - 23:10

          That's really a load of rubbish. the $1600 ish is that what should have been deposited into her account? :/

        • bluedufflecoat on 06/03/2014 - 10:05
          +1

          Can you look at the transaction history of your mum's super?

          If there is only one deposit in her account - that sounds to me that her employer has not been paying the super contributions into her account and you should (or your mum anyway) should take it up with them.

      • danyool on 07/03/2014 - 01:13
        +1

        They may show the super on your payslip, but your employer only has to transfer it to your super fund each quarter - so if she's only been working for 5 months, this sounds possible. The'll prob have just paid last one on 28th Feb. Might not be showing in account yet.

    • Kevan2 on 06/03/2014 - 00:08

      Some real issues here. There are regulations of the latest time each quarter? The employer has to pay super. Check statents and compare what is in and when paid in. Often when employer is folding, benefits such as super does not get paid. Ring fair work Aus. And they will help. You can do this without dobbing in employer. That is if job is important.

  • VehemenceThePhoenix on 05/03/2014 - 20:01
    +1

    "I'm only 21 I really don't need death insurance right now."
    You can die at any time, while you can only access your super when you're old and retired, when these fees will probably be insignificant to you.

    • McFly on 05/03/2014 - 20:12
      +1

      You can die at any time

      So? He doesn't need it.

      • pyro love bird on 05/03/2014 - 20:25
        +1

        *She. I'm female, but thanks for backing me up :)

      • netsurfer on 05/03/2014 - 23:40
        +1

        The death component is probably useless to OP. It is for someone who's married and has children + mortgage.

        Generally, a husband would buy this type of insurance to protect his family (he does not want to leave his family with debt). It is unusual for a female to buy this kind of insurance.

        • pyro love bird on 06/03/2014 - 01:11

          Well I'm single, no kids, and no mortgage. And tbh I don't want a funeral, and there's no point wasting money, those things are crazy expensive these days!

        • forever saving on 06/03/2014 - 09:41

          Coffee? Cheap $1 7/11 kind. :)

        • danyool on 07/03/2014 - 01:19

          you don't want a funeral?

          What are you planning on having happen to your body?? I know you think its unlikely, and whether it's cheaper to get insurance or just save for it separately, but eventually somoeon will have to pay for it.

        • pyro love bird on 08/03/2014 - 04:24

          I'm caffeine intolerant :(

        • pyro love bird on 08/03/2014 - 04:25

          Nope, don't want a funeral, cremate my body or donate it to science, also want to donate my organs. I won't need it when I'm dead.

    • pyro love bird on 05/03/2014 - 20:24

      Are you a caller form the combank trying to sell life insurance? You sound an awful lot like the person who spoke to me who said "You could die tomorrow in a car accident".

      That may be true, but right now, it is significant to me.

  • [Deactivated] on 05/03/2014 - 20:13
    +1

    You're all a bunch of whingers. Don't you know that your Super EXEC hasn't been able to afford a 2nd car Porsche for his wife this year?

  • iSamurai on 05/03/2014 - 22:40

    I'm with uni super as well as I also work for my uni… As far as my understanding goes there's some silly fees but the life insurance part is optional. Also uni super is compulsory at my uni so unfortunately I can't switch super funds. If I could I would jump straight to ING Direct… No fees at all.

    • pyro love bird on 05/03/2014 - 23:12

      Can I ask you what state you're at? I'm curious to know if we're in the same boat. If I can't swap out then they're just going to slowly chew away all my monies!

      • netsurfer on 05/03/2014 - 23:31

        Have you called UniSuper and asked to have the TPD+Death insurance cancelled? When I had my UniSuper, there was no TPD+Death insurance. You need to have the insurance cancelled. The insurance should be optional. Otherwise, ask to vary the insured amount to close to $0.

        The admin fee ($55) is not really an issue assuming UniSuper delivers better return. Like I mentioned, out of all the supers I've had so far, UniSuper provided the best return. It was the only super which actually provided sufficient return to completely offset the tax paid to the government + the admin fee.

        • pyro love bird on 06/03/2014 - 01:13

          During the six months that the statement covered I had one return of $15. and repeated money taken out as admin fees, so its not like I'm making the fees back. I'll have another go at calling them tomorrow

      • iSamurai on 06/03/2014 - 20:02

        QLD

        Actually I just checked my statement and I was charged TBD insurance as well. It's $22 over three months… That's almost $100 a year. The admin fee is $29 also for three months. The deductions cost more than the investment returns, lol… time to cancel?

        • pyro love bird on 08/03/2014 - 04:23

          Apparently you can't just cancel… But I have to confirm that, because I'm not 100% sure. But I do think for low income earners, its harsh to still apply to same fees just to balance out those who are making bigger returns!

  • Kevan2 on 06/03/2014 - 00:36

    We need to look as some real issues here.
    Insurances can work if shit happens. Think about - do I really want to depend on Centerlink or the new leaner centerlink for the rest of your life. What are your future plans - travel, house, so on - how are you funding this - working, lotto, inheritance, again if shit happens on centrelink you can't even afford lotto without giving up a meal. You really can't get super out till 67+ unless shit happens or you leave Australia for good. So when you are young use the super money for this cost (get incidental advise or do sums yourself). Life really death payout, tpd and income protection. Death for some one or charity you love, tpd and income protection for you. But don't just accept 24 month income protection as you might not get better in that time - real shit happens- then you will want longer cover. Been there (not dead) but used and using insurance both in and out of super. Only wished I could have had unisuper I could have been better of. This is not advice but go talk to super and insurance experts. Look at self help at insurance, bank, and unisuper web pages. Not rocket science and if you lecture you will find it easy. Tax someone has to pay tax - 15% on contributions if made by employer or salary sacarfice (up to legistated amount $25kpa contributed then you really need proper advice) 15% on earnings which hopefully is lower than your marginal rateoftax.

    • pyro love bird on 06/03/2014 - 01:20

      I get that stuff happens, but life's pretty boring for me atm, I'm a uni student. I need to retain as much money as I can just so I can make ends meet without stressing myself out so much that I need to go to hospital. I mean really, what are the chances that anything substantial is going to happen?

      I mean unisuper may be great for people with full time or even part time jobs but very occasionally will I be working so it's not as if there will be money regularly put into the super acc.

      That said though, I do appreciate your input.

      • lisss on 06/03/2014 - 18:49
        +1

        I get that stuff happens, but life's pretty boring for me atm, I'm a uni student. I need to retain as much money as I can just so I can make ends meet without stressing myself out so much that I need to go to hospital. I mean really, what are the chances that anything substantial is going to happen?

        Why do you care about super then? It's not gonna affect you making ends meet until you retire…

        Before anyone goes and does calculations to demonstrate the time value of $200 over x number of years, I would argue that in terms of the contributions you make later in life, the importance of, and return on, the contributions made during your casual/uni employment are comparatively insignificant.

        • leiiv on 07/03/2014 - 00:58
          +1

          That does not change the fact that the fees are eating out the principal you own, which is unfair. For account with low amount, the fees should be capped to the investment return.

          In addition, there are several circumstances where you can withdraw your super before you reach the age of 60:
          http://www.ato.gov.au/Individuals/Super/In-detail/Receiving-…

          We do not know what OP's circumstances are.

        • pyro love bird on 08/03/2014 - 04:21

          Thanks leiiv! Couldn't have said it better myself, I feel almost ripped off in a sense, because I'm losing so much and its just going to waste.

          In regards to those particular circumstances, I'm not dying or need to pay for a funeral, I am going through financial hardship but I don't fall under their requrements, most of the others dont apply either. But compassionate grounds is a maybe.

          So thanks for the link. I haven't been able to afford to pay for certain medical treatment, but figured the money was better put into paying my bills.

  • Bargainbag on 06/03/2014 - 02:26
    +1

    Unisuper is good if you have opted in for their Life insurance and TPD insurance.

    I've done a lot of reasearch into super and fees the last few weeks and my picks are - Sunsuper, ING super (both have low fees!) and Unisuper (slightly higher fees but weekly insurance premiums cheaper than Sunsuper and ING for same level of cover so if you have insurance you will save over the long run).

    Plus - Unisuper's performance has outbeat the median return level even with their "balanced" option. Not everyone can have Unisuper so count yourself lucky you have the cheapest industry super!

    If you want to drop Unisuper (ie you don't need any insurance products), go Sunsuper or ING for lowest account keeping fees until you build your super up.

    • pyro love bird on 08/03/2014 - 04:15

      Thats great advice, thanks Bargainbag, but from what I gather from a few other OzBargainers its apparently not possible to transfer out of UniSuper, but I am yet to confirm this with someone from unisuper. I think the thing with UniSuper is that its fantastic for those who can afford to put more money in, but its really not great for those working casually and having little money in it.

  • bittervalue on 06/03/2014 - 10:07

    For the first few years as you accumulate low levels of super from casual/vac work, the amount should be seen as a relative sundry. I would suggest rolling over your account to somebody such as REST. Rated the best super fund last year, I feel it is transparent in displaying all account fees. Also, you can clearly choose what level of risk you are willing to let REST take with your money (higher risk = greater gains = higher volatility = greater chance of loss). I would suggest you lean towards the growth (higher risk) side of things as you are young and your balance is somewhat low. As you get older you can (and probably should) attempt to be more stable and chose a defensive stance on your super. Hope this helps you, and whoever else is unsure about super.

    • pyro love bird on 08/03/2014 - 04:12

      Thanks for the advice bittervalue! I tried googling REST but I didn't find a super fund under that name, do you have a link I could look at?

      Thanks

  • Baghern on 06/03/2014 - 10:56
    -1

    I fixed up my dad's super recently.

    I left the life insurance part in, as it was minimal - for a low amount. Super "insurance" is also the best value insurance you can get around as well.

    But I was very surprised to see they had auto'd him into "Income Protection", now that is a SCAM insurance, its expensive, and from what I hear its much harder to qualify for. I removed that part.

    I registered his account online then removed the income protection, this was for Aust Super.

    Does UniSuper have an online update option?

    • pyro love bird on 08/03/2014 - 04:11

      I'm not entirely sure, I logged on a couple of times to check if I had lost anymore money. I didn't think it would be legal to add extra fees and charges without the account holder's consent! I'm glad to hear you knew what you were doing though

  • imcold on 06/03/2014 - 11:47

    Pretty much you need to have insurance cancelled.. The request will need to be made in writing, and signed by a justice of peace

    Or you could have it transferred to another super-provider.

  • SuperSavvy on 06/03/2014 - 12:21
    +3

    Hi Pyro. Great to see that you’re asking questions about your super. All new members should receive a Product Disclosure Statement (PDS) at the time of commencing at their university or shortly after.

    If you did not receive a PDS, UniSuper sincerely apologises. We encourage you to check it out here at our website http://unisuper.com.au/forms-and-documents/product-disclosur…

    UniSuper understands that there is much detail in the PDS’s, but we must provide you with more information rather than less.

    If you do have any questions we would encourage you to call us.

    The best number to call us on is 1800 331 685. Ask to speak with UniSuper’s Head of Member Services, Luke Jamieson. He is very happy to speak with you about your account.

    On the topic of fees, UniSuper is an industry fund and proud to have some of the lowest fees compared with other funds. But don’t take our word for it. Check out the fee comparisons made by Chant West, an independent specialist superannuation research and consultancy firm http://unisuper.com.au/new-to-unisuper/compare-unisuper

    You mention that you are only 21 and don’t expect to have to insure against life events at this age. We hear that statement a lot. Most of us expect to lead healthy lives. However, that does not take away from the importance of insurance. UniSuper’s insurer, TAL, recently undertook a survey with Gen Ys. Interestingly, it showed that they were very engaged. We encourage you to read the article http://www.financialstandard.com.au/news/view/37947129

    We trust this information has been useful. We’re here to help. Please don’t hesitate to pick up the phone and call Luke Jamieson. You can also email [email protected] if this is a preferred method of making contact.

    Best regards, UniSuper

    • netsurfer on 06/03/2014 - 21:42

      Thank you SuperSavy. From one of your links, it has a link to the following form:

      Cancelling or Decreasing Your Insurance Cover Form:
      http://unisuper.com.au/~/media/Files/Forms%20and%20Downloads…

      The D&TPD insurance is something quite a few people are interested. However, all D&TPD insurers only offer either D+TPD insurance or just D insurance . Thing is, for her, TPD insurance makes sense, but D insurance doesn't (she is single). For single people, you can't help but feel the insurance is somewhat ripping you off (given that single people only want the Total and Permanent Disablement (TPD) part, not the Death (D) insurance but you must take both if you want the TPD insurance.

      It is not UniSuper's fault. UniSuper offers the option for their members (tax benefit to the members for those who want one). However, the insurers are smart. Anyway, I regard UniSuper highly and it didn't make sense for the insurance to be mandatory. As expected, UniSuper members have full control of the insurance.

      • pyro love bird on 08/03/2014 - 04:07

        That's for the link, I'll get right onto it.

        Unfortunately the options I had were not made clear, the lack of information is something that bothers me, it also isn't great when most uni students hardly know anything about super. Unisuper is great for people with more money to start with, not so great for those with less.

    • solar on 07/03/2014 - 18:38

      I'm not going to comment on fees, but the OP should verify whether or not a PDS was provided. At a minimum, a direct link to the PDS for their product must have been provided. This is for legal compliance. I work in Corporate Superannuation with a large financial institution, and failing to provide Members with a PDS would have heads rolling. If it truly was not provided, then UniSuper responding with "UniSuper sincerely apologizes" is not sufficient. They are in breach of the law and you should follow up on this. However, given the oversight that generally revolves around this area, I would advise OP to re-visit all correspondance received (and the addresses UniSuper had on file) to ensure that this wasn't provided.

      • pyro love bird on 08/03/2014 - 04:09

        Looked through my things again, and could not find a PDS, also didn't recall receiving it in the mail. May I ask you how I should follow up on this? The address I would assume is correct as I received the initial letter and the statement.

        Thanks solar for your input, it's great to hear from someone who's in the profession.

        • solar on 08/03/2014 - 16:58

          UniSuper would have sent out a Welcome Package. This package could just be as simple as a 1 page letter, or have a bunch of brochures and forms in it. As part of this package, they should either provide you with a PDS, or within the text of your documentation provide a website link directly to the PDS on their website.
          I will admit that there is a part here that I don't have experience with - from what others have said this is not a normal Superannuation plan but is somehow tied to your union involvement at the university. I only deal with corporate superannuations, so I do not know if your union would have some responsibility for providing superannuation information to you in this case. But I doubt it, I don't see why it would be different to how all other corporate superannuation is handled. You might want to talk to your union rep though.
          I would follow up with contact person that was provided in the post above. I can't give you any advice on what you should do … but if I was in your shoes, I might focus on the lack of PDS. If they had issued one - there would be a record of it, which could be reprinted and should have the original issue date on it. Of course that doesn't mean it actually got sent out. I would say that without access to the PDS, I was unaware of the product fees and rates and would press to get the administration fees recovered for this time period. Without trying to sound dismissive - it's a small amount of money that you are talking about, so if they are dealing in good faith they may be open to this approach. Constructive discussion with an actual person at UniSuper (and one who has the ability to adjust charges) is the first step. If that doesn't work - then the 'squeeky wheel gets the grease' approach is a fallback.
          Good luck.

        • pyro love bird on 09/03/2014 - 04:12
          +1

          Thanks Solar, I'll give them a call on monday and see what happens then, I really appreciate your advice

    • pyro love bird on 08/03/2014 - 04:04
      +1

      Hi SuperSavvy,

      I do appreciate your reply, but you are still trying to justify the fees and things, the fees may be great for people who have a regular income, but for someone who has a very irregular income, it feels awfully unfair that it's all just draining away into your pockets.

      Insurance is important yes, but as of right now what is more important is that I hold onto what I still have left, I can't afford to have my money drained from fees, perhaps I will take it up later in life, but right now I do not want insurance.

      One question though, just to clarify, is it possible to change out of the unisuper account into another account at all?

  • solidice on 06/03/2014 - 13:03

    You won't be able to access your $450 for another 40 or so years. Hypothetically if UniSuper refunded you the fees/insurance. You have $450 sitting in there. You can't take it out yet as its super. In 40 years your $450 will be worth almost nothing. I wouldn't stress about it.

    • gimme on 06/03/2014 - 14:48
      +1

      Quite the opposite. $450 in 40 years will be worth exponentially more. That's the whole point of super.

      It will only be worthless if you keep it under your mattress.

      • pyro love bird on 08/03/2014 - 04:01
        +1

        Yes in 40 years when I've got a constant income it won't mean much, but right now it's worth quite a bit to me, and its painful to see it all wasted on fees when I don't make much and it feels unfair that they are taking away what little income I have.

        But I also agree with gimme, having a super is meant to grow the money that you save up in there, so it would be worth more if it wasn't being drained away from admin fees.

        "It will only be worthless if you keep it under your mattress."- at least it'll still be there in 40 years, if its being taken away via fees then it really will be worthless

        • [Deactivated] on 09/03/2014 - 20:52

          Exactly, don't believe the financial advisors that spruik the benefits of managed funds either.

          The fees usually outstrip any gains from actively investing in the market versus a passive term deposit.

          If you continuously have a small amount, then you really need to make some voluntary contributions, otherwise you are screwed.

          Even if the fund earns 10% a year. It will be many years before you make a return after fees.

          Assuming $450 is input into the account each year and you end up with $210.

          Year 1:
          450-240=210

          Year 2
          210*1.10+450-240=441

          Year 3
          441*1.10+450-240=695.1

          and so on

          Year 30
          $34543.74476

          It isn't until the later years that you earn more, but by then there may be higher performance fees on larger amounts. The calculation above assumes constant fees which is an unrealistic assumption, furthermore 10% returns are also unrealistic in the long run. When most people retire at 60, they should have under $100k.

          Now I don't see how someone who retires at 60 can say they have earned $150-300k like on television. That is total fraud by the superannuation industry. That is also why they can afford to publish so many stupid advertisements about historical returns and mumbo jumbo.

          Even if you use the historical return of 10%, you don't get anywhere near the numbers on television.

          To replicate my figures
          =450-240 in the First cell in excel
          =[FIRSTCELL]*1.1+450-240 Second cell
          Drag down.

          My superannuation is held outside of government regulations. It's a DIY super (not SMSF), and consists mostly of precious metals including gold. I also have housing which would be not allowed under the fraudulent laws of Australia.

          Either way, lots of people will still be collecting the government pension come 50 years time, provided it still exists. Which it might not… So make sure you have your own DIY super or rainy day fund.

        • pyro love bird on 10/03/2014 - 01:25

          Hi josephchi, that's for all that info, most of what I'm reading on the super sites are just heaps of advertising which is hard to believe really.

          Just a question though, isn't it risky to be putting your money in things like gold ? But even if it wasn't wouldn't you have to have a decent amount to start off with?

          Thanks for the advice

  • imcold on 06/03/2014 - 15:51

    Some funds let you withdrawal the super as cash.. if you are no longer making any contributions to that super account and that balance is under $200.

    • moflare on 07/03/2014 - 08:33

      I use to have unisuper and had a similar situation with my balance dropping significantly. I was able to withdraw the money to my bank account once the balance dropped under $200 and would recommend doing so.

      The uni also rejected my application to use my other super provider (having filled out a super nomination form before commencing work) as they said it was not allowed/possible. 12 months later I had lost about $100 in fees.

      • pyro love bird on 08/03/2014 - 03:57
        +1

        I guess that's what I'll have to do, but I honestly think its unfair that I have to first lose so much of the money that was in there before I could take any of it out. Surely taking advantage of students and such isn't legal?

  • driew on 07/03/2014 - 09:05

    I would have suggested switching to a different super fund but looks like that's not possible. I believe it's possible but difficult to remove your Life and TPD insurance.
    You need to really think about whether you want insurance or not. In the unlikely event that something does happen, do you have family and friends that can support you? Personally I would try to get rid of that insurance until you're a little older. It really depends on your own individual circumstances. You should take the time to do your research as super will determine what sort of lifestyle you'll have when you retire. Most people don't really consider super when they first start out; I didn't research it seriously until a few years into my career.

    • pyro love bird on 08/03/2014 - 03:56
      +1

      As of right now I don't want any insurance, I just can't afford it. and maybe when I have a more stable job/pay I could up my cover.

  • mompon on 07/03/2014 - 18:34

    Am in the same situation as pyro.
    Called them and got told that there is no protection for balance below $1000 anymore because it was unfair towards members with higher balances. Can't help but feel that this is a bit twisted…
    I won't get insurance premiums refunded.
    Will roll over to my main super fund. Not sure what will be left in the end.

    • pyro love bird on 08/03/2014 - 03:54
      +1

      Well from what I understand, we can't transfer it out into another account and I feel cornered. I make a small amount of money, it gets put into unisuper, they take fees and stuff out of it until I'll have nothing left and I dont make anywhere near enough returns to make up for the losses. So they will always win when the super has a small value.

  • sirplus on 08/03/2014 - 11:44

    FWIW checkout StateWide. I think it the best I ever had.

  • daffyd on 08/03/2014 - 15:15
    +1

    I'm also stuck with a unisuper account due to the employment agreement.

    If you plan to do ongoing tutoring or similar with the uni there's not much you can do as they'll only pay it in there. You can cancel the insurance coverage though if it's not desirable for you at this stage.

    If/when you don't expect further income from universities you can roll it over to another fund.

    The fee structure of accumulation 1 is bizarre for the majority of members who are casuals for a relatively short period of time. But I guess it keeps services up and fees down for the full -time long-term workers who use the additional services (and who are no-doubt represented better at the board level)

  • Devils Advocate on 08/03/2014 - 15:24
    -1

    The accusations and mis-information directed at superannuation in this thread is worrying. If you don't understand how super works, then educate yourself. Don't go throwing accusations around

  • RefusdClassification on 09/03/2014 - 13:20

    I found an article on a finance site attacking superannuation; it says to never make any voluntary contributions to superannuation. http://rogermontgomery.com/dear-under-50-investor/

    Here are some quotations from the comments section: 'The leaving the country and being able to access and take your superannuation should be introduced. After all it is “your” money, not the governments, not the superannuation fund managers (if not self managed). If I decide at say 50 years old that I don’t like the socialist leanings of the governments and wish to emigrate to another country, I should be allowed to take my superannuation with me."

    "Super is big skim. Government can change legislation any time and take money — example Argentina — or restrict withdrawal — example Hungary. And last all the helpers who manage our super are having great time eating big chunks of our money through all kind of fees."

    "Superannuation is – and always has been – a confidence trick on wage and salary earners. It is a hidden tax which has the added effect of supporting the (largely Sydney-based) funds management and finance industry.'

    Super – a lurk for the rick, pointless for the poor and patronising on the middle class. And I should add a cash cow for the finance parasites.
    Super should be advertised as something you won’t be able to access when you need it and that will get taxed when the government needs it (like when all the private debt becomes public debt)."

    • pyro love bird on 10/03/2014 - 01:27

      That really says what I feel towards super in general because of this one experience into words.

      People should have the option to have a super or not. Otherwise to invest in other things, whether it be in gold (which seems to be popular) or real estate

      • gimme on 10/03/2014 - 10:14

        It's called SELF MANAGED SUPER - You already have the OPTION if you choose to.

      • Devils Advocate on 10/03/2014 - 13:10
        +2

        Without Super individual tax rates would be much higher. Super is designed so that people will always have money to retire on, and won't need to rely on government pensions in retirement.

        I'm sorry for what I'm about to say pyro love bird, but you are in so far over your head with this topic. Your ignorance is on a whole different level.

        Just trust us. Super is a good thing. In your unique scenario it seems like the best thing to do would be transfer the funds to the no-fee account with ING as you mentioned. Start an account with them and google "ATO super rollover form" to transfer the funds once the new account is set up.

        • leiiv on 11/03/2014 - 00:48
          +1

          Before pointing out other people's ignorance, please read the whole discussion first. As we have already concluded, there is no way for OP to switch to other super account. Well theoretically, OP can open another super with ING and periodically transfer the funds from Unisuper to ING. However, I do not think that the Unisuper's fees can be avoided in any way.

        • Devils Advocate on 11/03/2014 - 01:08
          +1

          Yeah, I read the first 50-60 comments and most of them were brain numbing.

          To my understanding OP did some part-time work for a university and had their super paid into Unisuper (no superchoice for their SG).

          OP can move their funds out of Unisuper, it's just if they go back to their old employer they will start up another Unisuper account to pay the SG into.

          So it depends on if/how often OP plans on going back to work for the university.

        • McFly on 11/03/2014 - 23:05

          I believe she is doing part time work there.

          And she cares about every dollar of her super - a lot more than many others in her situation do.

        • pyro love bird on 12/03/2014 - 03:04

          Thankyou.

          Yes, "Periodically" so when its lower then $200 I can withdraw it, have it closed and put it into an ING account, but then I am still losing money.

        • 1ch1go on 12/03/2014 - 08:59

          Note that not all super allows withdrawal for balances under $200. You have to check UniSuper if their Trust Deed allow this.

  • [Deactivated] on 09/03/2014 - 20:40
    -2

    I have all my super in physical gold.

  • [Deactivated] on 17/03/2014 - 21:33
    -2

    Can't be bothered reading through the whole of this but I've noticed some alarming comments so I'll make some points which others may already have:

    (1) If you weren't advised of fees etc via a PDS then you should claim the insurance back from the fund. I had a similar case with a different super fund and they were required to repay > a year's worth of fees. Stand up for your rights and if necessary threaten to involve APRA.

    (2) I note a few people recommending "zero fee" super funds. There is NO SUCH THING - unless you do your own. All funds either charge an admin fee (usually monthly) and investment fees (different percentages depending on the investment type), OR they take larger slices of your investment via commissions.

    (3) INDUSTRY funds (eg Australian Super etc) are "run only to benefit members, have low fees and don't pay commissions to financial planners". As the ad which has been running for years now says - over time you should generally be better off in one than funds which pay commissions.

    (4) Don't blame anyone else for not knowing the basics about how YOUR money is being managed.

    (5) If you don't like UniSuper transfer you money into an industry fund - any one you want which will accept you - AFTER you get your refund of course.

    http://www.industryfunds.com.au/choose-industry-superfund.as…

    PS while I have your ear - the word is THAN, as in "less than"

  • Aneurism on 10/04/2014 - 23:19

    Personally I think this is a super industry wide problem in relation to casuals. It's like being forced to have a bank account with $5 monthly fees when you only have $50 in it. I'm not even too sure why the government forces casuals to have super. Would be better if they just get more up front.

    I am with unisuper and my impression is it is the compulsory super if you are doing uni related work.

  • Aneurism on 14/04/2014 - 10:11

    http://www.unisuper.com.au/about-us/news/2014/03/18/federal-…

    This information there might be relevant to the situation. It indicates federal government rules were implemented which standardised and changed low income protection. The unisuper protections for low income earners were removed to comply with this in July 2013. Chances are all other super are going to follow the same set of rules.

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