Starting a new job? Here is what you need to know in the first 120 days!
Starting a new job is a pretty exciting and sometimes stressful time. There can be a lot of negotiations going on and contracts to be read and signed. All of these things are very important but when it comes to the figures, it is likely that you are going to focus wholly and solely on the salary.
And rightly so, it would have to be one of the most important aspects of negotiating a new role.
There is however something that you need to consider when starting a new job, and you usually only have the first 120 days to look at it. I’m talking about corporate superannuation.
Corporate superannuation is not necessarily available with every employer, but is usually present in larger companies. Essentially it is a superannuation fund that is specifically designed for large companies and employees have the option to join the fund that may have some unique benefits available.
So what kind of benefits are we talking about here?
Automatic insurance: most corporate super funds have some form of automatic insurance built into the product. This can include Income protection, Life insurance and Total and Permanent Disability insurance. The amount you are entitled to is usually formula based.
You may already have your insurances covered, but why not do a comparison. Because of buying power, it is likely that the premiums available to you through these funds may be cheaper than what you currently have. Also, if you have any issues getting insurance due to your health, then this insurance is usually offered automatically with no exclusions. This is a rare opportunity for those who have severe health issues, so do your research and see if it is worth taking advantage of.
Cheaper fees: With these larger companies, they tend to have buying power. That means that they have negotiated wholesale fees for you in most circumstances, while still accessing high quality superannuation funds. It’s not guaranteed to be cheaper, but it’s worth assessing the plan.
Access to a financial adviser: For most of these accounts, there are financial advisers attached. Contact them within the first 120 days of employment to find out exactly what is on offer. In most cases, advisers are going to take a fee from your super fund regardless of whether you use them or not. It is known as ‘intra fund advice fees’. It’s not necessarily a bad thing and may still work out great for you if you choose to go down this path, but you must be mindful that this is usually part of the deal.
Timing is everything: Because these funds can be so advantageous, it is usually only open for a period of time, normally up to 120 days. You can get access to all of the great benefits, however you will need to join within a certain period set out by the super fund. You may be able to join after this time, however usually it means that the offering is different. You may not have access to the insurance or it may have exclusions added to it.
So, when you are starting a new job, take an extra 5 minutes to look at what your potential new employer has in the way of corporate superannuation. For those with health issues, it is even more important as it is an insurance loop hole that is only open for a small window. If you have an adviser, give them the details, it may work in with your current financial plan as they will be able to see the benefits available to you.
This post is from our resident Financial Planner, Cara Brett. Check out her details in the About Us page.