CareSuper is one of Australia’s largest superfunds, offering its members low fees and high returns when compared with other industry funds. It has around 250,000 members Australia-wide across its superannuation offerings, with its most common offering being its MySuper product, known as its Balanced option.
On June 1, 2023, CareSuper announced plans to complete a merger with Spirit Super. The two have entered into a binding agreement, with the merger expected to be finalised late next year. With that being said, the following data may vary significantly as the two superfunds combine.
Nonetheless, at the time of writing, CareSuper is a decent choice for Australians looking for a straightforward superannuation service, as it offers low fees and slightly higher-than-average returns compared to others in the industry. However, its Balanced product—the MySuper product which we will be reviewing—doesn’t offer the perks that many others do, such as insurance inclusions and financial advice.
Pros
- Low administration fee
- 8.28% average return over 10 years
- Out-of-hours customer service
Cons
- Income protection must be applied for
- Additional fees required for financial advice
- -3.38% return rate over the past 12 months
Table of Contents
About CareSuper
CareSuper is one of Australia’s largest superfunds, looking after nearly $20 billion in assets from 220,000 Australians.
Originally established in 1986 to serve office-based employees, CareSuper is now an industry fund for individuals in the professional, managerial, administrative and service occupations across all business sectors.
On its website, CareSuper states it welcomes anyone “looking for a fund that embraces a ‘profit to member’ ethos and focuses on long-term investment performance, quality and simplicity”, and that it knows “the attributes of a professionally minded fund appeal to people from all walks [of] life”. In short, CareSuper is an open fund.
Compared to other open industry funds in Australia, CareSuper has a comparatively low annual administration fee of $350 on its MySuper product, being its Balanced option. Despite the low fees, CareSuper only has a ranking of 1.5 stars on consumer opinion site ProductReview, from a total of 125 reviews.
Fees
The annual administration fee for CareSuper’s MySuper product is $345. This figure is based on a balance of $50,000 and covers administration, investment and transaction costs.
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What’s included?
On top of superannuation services, CareSuper also offers its members some additional (albeit limited) services on its MySuper Balanced product.
Insurance
Insurance with CareSuper depends on a member’s age and their superannuation fund balance. For death and TPD cover, other eligibility conditions also need to be met, and additional fees may apply. This is CareSuper’s standard insurance cover, which commences automatically for a member once the conditions are met.
Income protection, however, is not included with standard cover. To receive income protection insurance, members must apply.
Financial advice
As a CareSuper member, you are entitled to complimentary financial advice over the phone via an appointment. For more comprehensive or complex advice, an additional fee is required.
CareSuper’s Average Performance
A superfund’s performance is measured by looking at its average rate of returns across a specified period of time. For CareSuper’s MySuper product, this average rate of return has been 9.05% and 8.04% for one year and 10 years respectively.
The ‘target return’ level for many superfunds is the Consumer Price Index plus 3% a year over ten years. As inflation is currently hovering around 5%, this puts CareSuper’s 8.04% average on par with the target level.
ESG Credentials
Many Australians are looking to be more ethical and sustainable in their daily lives, and that quest extends to superannuation. As individuals search for more ethical superannuation funds–and switch when they find one–these funds need to stay ahead with their own ESG credentials.
CareSuper has indeed done that, as a founding member of the Australian Council of Superannuation Investments. It is also a member of the Responsible Investment Association Australasia (RIAA) and a signatory of the PRI–a UN-supported network of investors working to promote sustainability.
CareSuper has also pledged to be tobacco free financially, meaning it does not invest in companies that create tobacco products.
Customer service
CareSuper offers its members phone enquiries from 8am-8pm Monday to Friday, allowing its members to contact the customer service team outside of standard working hours. It does not, however, offer weekend customer service phone calls.
For out of hours enquiries, or for an alternative service other than the phone, members can submit an online form via the website.
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Frequently Asked Questions (FAQs)
When was CareSuper founded?
CareSuper was founded in 1986 in Melbourne, Victoria. It was previously called the Clerical, Administrative and Related Employees Superannuation Plan.
Is CareSuper a good superfund?
To compare superfunds and consider what is ‘good’, an individual must consider their own circumstances and needs. CareSuper has low fees and relatively good returns; however, it has limited insurance options and financial services.
How can I contact CareSuper?
CareSuper’s customer service number is (03) 9192 4416, which is a phone line that is manned from 8am-8pm, Monday to Friday. Members can also contact CareSuper via an online form.
Did CareSuper merge with Spirit Super?
Yes, CareSuper and Spirit Super announced that have entered into a binding agreement to merge the two funds, with the merger expected to be complete late in 2024. The announcement was made on June 1, 2023.
Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners.
