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I was just wondering what happens to super when you have a child/children and cease work for a long period of time? Say if you decided to have a couple of kids and didn't return to work for 3 years or so, does your super fund just keep taking out fees all the time? I don't have much in my super (no thanks to dodgey bosses in hospitality for the first 5 years of working life) and it just seems a bit unfair. Does anyone know?
Yes, because they are still managing your fund.
I would contact them and ask.
In the past, I have had fund basically put into a holding pattern. So no interest and no Fees. Saying that though, Super is evolving and streamlining. So check out the ATO site and look up "My Super". Sorry I would do this for you (and others) but my net is being a pain.
I called up my super about this and they said that in theory the fees should be covered by the interest so it should stay at a stable level. Not sure if that actually happens though.
Some super funds won't take fees if less than a certain $ went in that financial year, but it depends on the fund.
This obviously won't reduce any payments that get made from your fund for any life insurance, TPD payments, etc, that you may have linked.
Jut ask them. They should be able to tell you easily enough.
Definitely call them up and ask. Fees and interest may balance things out so you don't have a net loss, but some funds also offer insurance (death/total disability) and f you arent making regular contributions they will cease the insurance cover. I know when I went off in leave without pay while pregnant with DD that all insurance eligibility was ceased because they weren't notified about me remaining an employee but being on a period of unpaid leave. It was stressful and messy to sort out.
So definitely speak to your super find directly and ask what happens for your circumstances
Thank you ladies, I will call them tomorrow and ask. I hope they can work something out. I would love to return to work! But unfortunately there isn't a whole lot available :(
I was able to do this too, for the last 3 years, until I was working enough to get super again:
I haven't worked since my son was born 4 1/2 years ago and while my super keeps having the regular fees taken out, they have been managing it well and it has actually grown by about 1/3 since I stopped work