SAHM and Super

**cyn** · 14-07-2009 20:22

I've been a SAHM for just over a year now, but have noticed that my super is rapidly depleting

due to fees and the fact that there's no money going in there anymore.

I rung my super fund to see if I can roll any over to DH's, and apparently that can't be done.

I plan on being at home for at least a few more years, though don't want to lose all my super, as I did make quite a lot in voluntary contributions.

What have you all done about your super since not working?

**Jules16** · 14-07-2009 23:17

This is an interesting topic. Do you know about the spouse contribution scheme? I might look into this to keep it up. I didn't realise though that there would be so many fees - my main concern was to keep it growing! It may have gone backwards 'cos of the recent market crash - or is it just all fees?

**Alexander Beetle** · 15-07-2009 10:49

Have a look at whether you are paying insurance. With most super companies you automatically get default insurance unless selected otherwise. I know with mine I had tpd, death cover and income protection. There is a monthly fee for all of them. I elected to remove them as I didn't want to be paying the fees, but that is an individual choice. However if you aren't working than income protection seems pretty pointless and it does add up. There is something you can do where spouse make contributions, but I can't remember what it is. Otherwise you can just make small conts yourself. I worry too as mine is dwindling away as we speak

**shockinamillion** · 15-07-2009 10:54

I spoke to my super company about 6 months ago when I noticed I had lost heaps. He told me that NORMALLY they gain enough interest to cover the fees, but because of the economic crisis/recession people who ahve no money going in will lose money. I lost a 10th of mine cos mine is sooo small being so young and not in work for long.

**garfield13** · 15-07-2009 11:25

good point, im in the same position. Do the govt still match the volt contrib?, i might start adding a little bit each month

**traseal** · 15-07-2009 11:39

yeah i think i need to organise something too

**mumma sienna** · 15-07-2009 12:00

hi ladies,

i work/study in a financial planning office, so i think i can answer some questions.

yes the spouse contribution scheme works well. it is where your spouse can contribute funds into your super on your behalf and vice versa, but these are personal contributions (out of your own pocket)but the first $3000 each year can be claimed as a tax deduction.

with any super fund you should shop around and try to bargain with the person looking after your savings. some planners/firms charge ridiculous fees and that is what will kill your super! you need to look at the risk involved with the investments they have you in aswell. the higher the risk, the greater the chance of losing all your super when the market falls/crashes.

my advice to those of you that are worried, would be to look at the adviser service fee(charged annually) and any other fees you are getting. at our office we don't charge anything over 0.99% for adviser service fee, but can charge up to 4%. some firms charge even more than this 4% though. also let your planner know what type of risk you want to be involved in, if you don't tell them, they won't know. if your not happy with what you find, shop around. there are so many super funds available.

Most important, you have to be involved in your investments within your super. keep in regular contact with your super fund and ask lots of questions about what is happening with your super and the markets etc. also request any documents/reports that you feel would be worth looking at. there should be no cost in this, that is taken into account in your annual fees.

i agree with the advice given about insurance... some people don't need/want them, but are still paying alot of $$ for them because they are unaware.

the govt co-contribution still exists, but will be reduced from $1500 to $1000. but still better than nothing.

**pegasaurus** · 15-07-2009 21:39

OH crikey. Guys - you are parents!!! Please think VERY carefully before cancelling your life/TPD insurances - you have CHILDREN to provide for!!!!

Many income insurance policies (and TPD for that matter) automatically cancel themselves if you don't have an employer contributing regularly anyhow.

Most super funds are negative this year due to market performances but the last three months have been quite positive. But if you don't get the money for 20+ years anyway, this will likely be a forgotten blip in your experience. Negative performances are to be expected at least 1 year in 5 and most fund 3 and 5 year average returns are positive.

As for adviser fees, if you don't have one or don't use one, don't pay for one at all! Many super funds allow you to remove the adviser fee altogether, if not, try an industry super fund which don't have them. End of rant!

p.s. IMO any fund charging over 2% p.a. is getting pricey... check your statement which will be with you by end of October but most likely in the 4-6 weeks.

**Alexander Beetle** · 16-07-2009 09:29

Oh my Pegasaurus, how presumptious of you!

Firstly - Don't assume the super company will automatically cancel your insurance once employer conts stop coming in. None of the companies I have been with do. There was actually something in Choice magazine about this.

Secondly - income protection insurance is pretty darn pointless if you don't have a job.

Thirdly - How do you know that we don't have life insurance with another company? In which case, are you aware that if you do then that can effect whether the Super fund will pay out as well?

Fourtly - trying to protect your super doesn't mean you are not providing properly for your children. Good Lord!

I am aware there are other ways of protecting your money, such as advisor fees, where the money is invested and so forth, but I believe people should know that they are paying insurance, a lot aren't aware of it. Like I said, it does add up, and might not be needed.

**cyn** · 16-07-2009 20:02

Thanks for all the replies.

Pegasus, I have life insurance elsewhere, and I also agree that you're being presumptuous suggesting that people aren't providing properly for their children.

I would like to see some government strategy put in place whereby women who do become SAHM's should be able to elect to transfer a portion of their super to their spouse. Or, as with the new super choices, perhaps joint super accounts for couples? I do realise that there would be complications with that idea, but just something to think about....