AustralianSuper members under age 25 are no longer given default insurance automatically when they join the fund. This change aims to stop account erosion and make the system simpler and fairer for young members. Younger fund members will be able to opt in to insurance rather than automatically receive it when they join.
AustralianSuper’s Group Executive of Membership, Rose Kerlin, said the move was based on extensive analysis and feedback on the impact of automatic default insurance premiums on the erosion of account balances of young people.
“People under 25 starting out in the workforce need to begin building a base for their retirement savings. Given that they are often on relatively low incomes, we don’t want to see undue account erosion because of insurance that may actually be of very limited value to them.
“But we also want to stress that members under 25 will still be able to choose to have insurance if they want it and cover will start automatically when they are 25.”