Things to Keep in Mind About Stapling
Changes to superannuation guarantee legislation which took effect from 1 November 2021 means that if you change jobs, your super will follow you. This 'staples' your current fund to you throughout your working life, unless you make a choice and tell your employer you want your super to be paid into another fund.
WHY DO I NEED TO KNOW ABOUT THIS?
It changes how the fund your employer pays your super to is decided. And it makes being with a strong fund more important than ever.
THINGS TO KNOW ABOUT STAPLING
Stapling makes it easier to:
- keep track of your super savings
- avoid paying fees on multiple super accounts.
Given millions of people have more than one fund, that could help them take more control of their financial future.
THINGS TO KEEP IN MIND ABOUT STAPLING
There’s a risk people with underperforming funds – with less than impressive long-term investment returns and high fees – are stuck with them, unless they actively choose to change funds.
It could also mean their super is invested in ways that don’t align with their values; for example, if the fund doesn’t have a strong commitment to sustainable investing.
Your needs also change as you progress in your working life. For example, many of our members appreciate and value a super fund that is dedicated to them and their industry.
The fund people may be placed in when they start their working lives might not be as well suited to them when they enter their chosen industry. So your super needs might be very different once you start your professional career.
