Superannuation

[John Citizen]

I am just trying to work out whether to change my super fund.

At the moment I am with the "Aviation Industry Superannuation Trust".

Is this "Aviation" super fund the most suitable fund for a pilot or are there better funds out there ?

Thanks.

[DirectAnywhere]

Not easy to answer.

Industry funds typically have better returns than Retail funds with lower management expense ratios (MER). The MER is typically expressed as a percentage and is payable as a percentage of the total funds under management. A small difference in MER (decimal points of a percentage can make a huge difference in retirement).

For example, a fund with an MER of a seemingly insignificant 2%, assuming inflation of 3%, needs to return at least 5% before you make a cent.

The fund that best suits you will depend on your time to retirement and risk aversion. Generally, if you've got a long time to retirement a higher risk fund ie. Australian and International shares, will provide a better return over the long run.

If you're close to retirement, capital preservation becomes far more important and people tend to be more risk averse.

Have a look at your age, time to preservation age (probably 60 atm if you're a young pilot), investment profile of the fund and MER. Get all the information you can on the funds you're looking at and look at their long term returns, keeping in mind that past performance is no indication of future performance!!

A lot of the information should be available online for a large fund or through a product disclosure statement (PDS) for any fund.

[ITCZ]

I used to be in AIST until I went to work for an employer that only pays into an AMP retail fund.

DA is right, I would have had a bigger balance if I had been able to keep paying into AIST.

Much lower management fees for a start. Better performance too.

Another advantage of AIST is that they keep an eye on employer payments arriving on time. If payments are late or missing, they will contact you and give you the chance to go in and ask payroll what is happening.

Usually the first sign of a company in trouble, late in writing checks to the ATO and super funds!

[chief wiggum]

Another advantage of AIST is that they keep an eye on employer payments arriving on time. If payments are late or missing, they will contact you and give you the chance to go in and ask payroll what is happening.

I had an employer who shafted me on super whilst I was with the AIST. They NEVER contacted me, and it was up to the pilots to take matters into their own hands via the ATO

I have lost more money being in AIST than with any other organisation.

Shop around I say. Do some homework.