The Australian Super Fund plays a large role in ensuring citizens are putting away money for their inevitable retirement, but it seems those who don’t play close enough attention to the funds on offer are missing out.
A Productivity Commission report into superannuation found that low income employees in under-performing default super funds can retire with less than half the amount of savings than those in high-performing funds. That equates to around $635,000 in lost savings.
That lost money inspired entrepreneur Mark MacLeod to come up with what he says is Australia’s first independent employee-choice-of-fund platform, called Roll-it Super.
He says that 10 million workers leave it up to employers to choose their Super fund for them – and the majority of employers are just as passive and unengaged at putting that fund to work.
MacLeod wants to change that apathy. He lost $50,000 of his own potential Super earnings when his employer unintentionally invested him in an under-performing default fund, MacLeod wants to help great employers empower their workers to reclaim control of their super, equipping them with the tools they need to properly understand and maximise their super.
"A light is being shone on the superannuation sector. The Royal Commission hearings exposed super funds putting commercial self-interest before member interests, while the Productivity Commission exposed the market failure of the default super sector. The solution is not more super funds-that is the last thing Australians need. What all Australians need is for current super funds to work hard for our money and do better,” he explains.
“Bad super habits start at work. Employers should not be responsible for selecting the most important financial product of an employee’s life, this is a decision only an individual can make.”
He explains that Roll-it Super does not recommend products or receive commissions from super funds. Its primary role is to help employers avoid the ‘default Super’ trap and advocate for employees to make smarter, more informed decisions about their superannuation investments.
MacLeod built the platform to include Super fund investment comparison switching tools; a financial wellness program; and a rewards program.
Roll-it Super’s pilot partners are not confined to a single industry, with the business working with employers across a range of sectors, including health and beauty, real estate, construction, recruitment and technology verticals.
The company has already closed an oversubscribed capital raise of $250,000 this year. It hopes to conduct another capital round in early to mid-2019.
“We are going to empower employees across Australia, from any profession, to take control of their financial future today,” concludes MacLeod.