TelstraSuper is the superannuation offering of Telstra, one of Australia’s leading telecommunications offerings. While TelstraSuper is still considered a relatively large fund, with more than 100,000 members and $24 billion under management, it does not stack up against its competitors due to its high fees and history of lower returns.
Pros
- Named SuperRatings Pension of the Year
- Recognised as an ethical investing leader
- Open to all Australians
Cons
- Insurance fees are not included in its annual administration fee
- Administration fee is high in comparison to the market
- Average annual returns don’t exceed inflation
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About TelstraSuper
While Telstra may be synonymous with telecommunications for many Australians, the company also has many other products on the market–including superannuation. Telstra started offering superannuation to Australians in 1990, and has since grown to a member base of around 100,000 members.
Initially, TelstaSuper was only available as a superannuation provider to Telstra employees and their families. Today, however, the superannuation fund is open to everyone and, on behalf of its member-base, manages around $24 billion in funds.
TelstraSuper’s MySuper offering is its balanced offering, which has been rated 4.2 stars from 18 reviews on Product Review. It was named SuperRatings Pension of the Year for 2022 in October, and the 2022 Chant West Pension Fund of the Year back in May.
Fees
The annual administration fee for Telstra Super is $547, based on a superannuation balance of $50,000. This figure excludes activity fees and insurance fees.
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What’s included?
Telstra Super does not have as many included perks as other superannuation funds in the market, and has conditions of its additional offerings.
Insurance
Insurance–being default death and TPD cover–is available with Telstra Super depending on the member’s age and salary. Income protection is capped at 75% of income, plus 10% super contribution. Fees associated with insurance are not included in the annual administration fee.
Financial advice
General and simple personal advice on your TelstraSuper account is included in your membership, with advice provided over the phone. For more comprehensive advice and services, appointments can be made at an additional cost.
TelstraSuper Average Performance
A superfund’s performance is measured by looking at its average rate of returns across a specified period of time. For TelstraSuper, its average annual return over the past 10 years has been 7.56%.
However, with inflation currently hovering around 5, this average annual return rate isn’t as high-performing as other superannuation funds in the market. Additionally, TelstraSuper’s performance over the past 12 months has been 9.07%.
While a superannuation fund’s performance is an important factor to consider, it is worth noting that past performance is not an indicator of future performance.
ESG Credentials
Insuring your superannuation fund is investing ethically is becoming more and more important to Australians. In fact, data from the Responsible Investment Association Australasia (RIAA) shows that as of 2022, four in five Australians expect their money in super, banks and other investments to be invested responsibly.
Meanwhile, 17% of Australians are already investing in ethical and responsible products–which TelstraSuper is also trying to be. TelstraSuper doesn’t invest in companies where a majority of earnings have been derived from thermal coal production, nor does it invest in tobacco products or controversial weapons.
TelstraSuper was also named as a 2022 ESG Leader Super fund by Rainmaker; however, it is not registered with the RIAA.
Customer service
TelstraSuper has very limited customer service capabilities. While it offers an online contact form, which is accessible at any time, its phone lines are only available from 8:30am-5:30pm, Monday to Friday. After working hours, on weekends, and on public holidays, this phone line for enquiries is not available.
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Frequently Asked Questions (FAQs)
Is TelstraSuper an industry fund?
Yes, TelstraSuper is an industry fund, which means it is a superannuation fund that is run to benefit members.
Related: Industry Super Funds Explained
How do I contact TelstraSuper?
TelstraSuper has limited customer service contact hours, being from 8:30am-5:30pm via phone. To contact TelstraSuper within these hours, dial 1300 033 166.
If contacting TelstraSuper from overseas, dial +61 3 9491 6801.
How does TelstraSuper compare to other superfunds?
Superfunds are often compared with one another via their average rate of returns, whether over the past 12 months or the average annual return across a whole decade. For TelstraSuper, its average annual return over the past 10 years has been 7.56%.
Since Australia’s inflation rate is currently hovering around 5%, TelstraSuper’s average annual return over the decade isn’t considered market-leading.
Is Telstra Super owned by Telstra?
Yes, the telecommunications company Telstra is the owner of Telstra Super. The superannuation subsidiary was established by Telstra Corporation Limited in June 1990.
What is the Telstra Super USI?
Each super fund has a USI, being a unique superannuation identifier. This helps you or your employer know that contributions are being paid into the correct super fund.
For Telstra Super, the USI is TLS01000AU.
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