In November last year, 720 TelstraSuper members were told they had seven weeks to sell all their individually held shares and ETFs. Seven weeks. Over Christmas. With no email. Just a pop-up window buried in a 24-page disclosure document.
Imagine logging into your superannuation account one morning to find a notification. Not an email. Not a letter. A pop-up window. One you had to click through just to access your account.
Hidden inside it is a change to your terms and conditions that would, eighteen months later, allow your fund to close your investment option with thirty days' notice.
A few weeks ago, the ABC reported on how TelstraSuper closed a member investment product. This gave 720 of its members seven weeks to sell their holdings, most of them over the Christmas period.
TelstraSuper described the decision as being "in the best financial interests of the membership as a whole."
We're not here to argue with that. Fund mergers are complicated, and TelstraSuper is merging with Aware Super. But that phrase is worth sitting with, because it raises a question every super fund member should ask.
What "In Everyone's Best Interests" Actually Means
Super funds, particularly large ones, make decisions for populations not individuals. That’s how the structure works. When a fund changes an investment option, adjusts its insurance terms, or closes a product, it weighs what’s right for its entire membership base.
That can work in your favour. Scale brings cost advantages. Diversification is built in. Administrative simplicity is real. It also means that decisions are sometimes made that make perfect sense for the fund but create real difficulty for individual members whose circumstances weren’t part of the calculation.
This isn’t a criticism of any particular fund. It’s a structural observation of the things that shape how we think about superannuation for our clients.
What We Look for When We Review a Client’s Super
When a client brings us their super, we’re asking one underlying question: Is this arrangement working for you, your specific circumstances, goals, and stage of life?
That question leads us to five things.
The total cost of your super matters far more than most people realise. It’s not just the administration fee. It includes investment fees, insurance premiums, and charges that are often embedded across multiple pages of a product disclosure statement. A difference that seems small today compounds into a meaningful difference at retirement. We look at whether the total cost is proportionate to what you’re actually receiving.
Not all super investment structures are the same. We look at what you hold, whether it reflects your risk tolerance and timeline, and whether your fund gives you the flexibility to adjust as your circumstances change. We also consider whether your super and your other assets are working together or inadvertently doubling up on the same risks.
Super is one of the most tax-effective structures available to Australian investors. But how those benefits flow to you depends on your fund structure, your contributions strategy, and your personal tax position. Tax outcomes vary significantly between individuals, which is why this is always a personalised conversation rather than a general one.
Most Australians hold life insurance and disability cover inside their super without knowing exactly what they have, what it costs, or whether it still fits their life. We review this carefully. For clients approaching retirement, we also look at whether insurance inside super is still the right structure. A very important fact that is overlooked or not understood (and usually written in the fine print) is that many of these insurance policies aren’t ‘guaranteed renewable’. This means your insurer can later decide not to continue your cover, often after your health changes or you claim, even if you’ve been paying premiums for years.
The closer you are to retirement, the more it matters that your fund can respond to your needs. We look at whether you have genuine control: the ability to adjust your investments, access your balance in a way that suits your income needs, and transition to retirement on your terms, not the fund’s.
What We Stand For
We believe super should serve the person, not the other way around. That means asking hard questions about cost, structure, and flexibility.
Recent events in the industry are a useful reminder that super isn’t a set-and-forget arrangement. It’s a product. Products change. Funds merge. Terms get updated. The people most affected are usually the ones who didn’t have anyone paying close attention.
If you’d like us to take a proper look at your super our team would be glad to help.
This information is general advice. We have not considered your objectives, personal or financial circumstances. You should consider the appropriateness of the advice for your circumstances before making any decision. You should obtain and consider the relevant Product Disclosure Statement and seek the assistance of an authorised financial adviser before making any decision regarding any products or strategies mentioned in this communication.
While every effort has been made to ensure the accuracy of the information, it is not guaranteed. It is based on our understanding of regulations and laws as at the publication date. As these are subject to change you should talk to a professional adviser for the most up-to-date information.
5 Wealth Management Pty Ltd | AFSL 314889 | 5 Advisory & Tax Pty Ltd