People who are retired, or nearing retirement with small amounts of superannuation cannot afford to take undue risk with their investments. For these people, safety is an important aspect when choosing a fund and investment options.
If an adviser/planner recommends a rollover to another superannuation fund they are required to provide in writing, good reason for the transfer including costs, benefits and consideration for other issues such as attached life insurance. Where a transfer/rollover request is made without seeking advice, the fund being exited may require a statement showing that consideration was given to any costs and the possible realisation of losses.
Transfers can be made within either phase (accumulation or pension) and from the pension to the accumulation phase at any age. Rolling over from the accumulation phase to the pension phase requires ‘certain conditions’ to be met. Refer to our factsheet 'Introducing Superannuation' below.
When rolling over, consideration should be given to appropriate investment strategies that satisfy the investor’s needs and objectives. Various investment options, such as those listed below, may be used and varying fees and charges apply.
Each option has a different level of risk. It is the investment objectives and attitude to risk, not predicted returns that should determine choice. Refer to our factsheets ‘Safety, Risk and Scams’ and ‘Risk Meter’ for help in understanding risk.