Kogan Super

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Online retailer Kogan has launched a superannuation fund called Kogan Super which it describes as a simple, low-fee product.

Kogan Super was established in conjunction with global superannuation, investments and human resources consulting firm Mercer. It’s the latest in a string of financial products which Kogan has begun to offer customers, having previously launched Kogan Money home loans, as well as a range of insurance products, including car insurance, home and contents insurance, travel insurance and life insurance.

Canstar has taken a look at what Kogan Super has to offer. Read on for an overview of some of its key features, fees and investment options.

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Types of Kogan Super accounts

Kogan Super offers one super product with a selection of five different investment options, or the option of a customised combination of these, based on the member’s risk tolerance. 

According to Kogan Super, some of the features available to its members include:

  • A quick online joining process
  • A choice of investment options
  • Online tools to help members manage their account, such as the ability to switch between investment options or to add or change your nominated beneficiary
  • The ability to consolidate existing super accounts into a Kogan Super account
  • Customer communications and investment updates
  • Limited free financial advice

You may also be eligible to receive insurance through your Kogan Super account. The cover generally available is default death cover (including terminal illness) and total and permanent disability (TPD) cover. Additionally, you may be able to apply for income protection cover.

What fees does Kogan Super charge?

According to its website, Kogan Super charges investment, administration and indirect fees. The fees charged vary depending on the investment option a member has chosen. Kogan says that other fees may also apply, such as transaction and operational costs, insurance premiums, and advice fees.

While some of these fees may not apply to everyone, Kogan says that members between the ages of 25 and 69 who have an account balance of at least $6,000 will be defaulted into life insurance and would need to pay the relevant premiums. The same goes for total and permanent disability cover for members between 25 and 64 years old. It could be worth considering whether you need this kind of insurance cover through your super.

Kogan says the total combined amount of fees charged is capped at 3% of your account balance if the balance is less than $6,000 at the end of the financial year.

Kogan Super offers the following example of the annual fees and costs for an Enhanced Indexed Growth Investment with a super balance of $50,000. But remember, other fees may apply and it may be beneficial to check the Kogan Super product disclosure statement and other product documents for full details of the fees you may be charged.

Fee % Cost
Investment fees 0.24% $120 each year
Administration fees 0.33% Plus $165 each year
Indirect costs 0.10% $50 each year (deducted from your investment)
Total Annual Cost  0.67% $335

Source: Kogan Super (as at 22 August 2019)

Eligibility to join Kogan Super

The only eligibility criteria that Kogan Super specifies is that you must be based in Australia in order to be a member.

Generally speaking, to be eligible to earn super from your employer and to have it invested in a fund such as Kogan Super, you must satisfy the following criteria, according to the Australian Taxation Office (ATO):

  • You must be an Australian resident
  • You must be at least 18 years of age
  • You must be earning at least $450 before tax per month from an employer

If you are under the age of 18, but earning more than $450 before tax per month, you may need to be working more than 30 hours per week to qualify for super. 

Kogan Super also requires a minimum account balance of $500 and it performs checks every six months to ensure that the balance remains above the minimum. 

How to join Kogan Super

If you satisfy all of the above eligibility criteria, then you can apply online to join Kogan Super. Kogan states that the application process should only take a few minutes. 

The application form asks for personal details such as your name, address and gender. Providing your Tax File Number is optional, but not necessary to complete the online form and you may provide it at a later date.

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Kogan Super FAQs

Yes, Kogan Super is managed through an online account that enables you to view your account balance, update your personal details and switch between investment options, among other things.

The money in your Kogan Super account can be invested using the following investment options, depending on your risk tolerance.

The investment portfolio options are:

  • Cash 
  • Indexed Australian Listed Property
  • Indexed Diversified Shares
  • Enhanced Indexed Conservative Growth
  • Enhanced Indexed Growth

Once you’ve chosen your portfolio, Kogan Super invests your super in various asset classes depending on your investment option.

The asset classes that Kogan Super invests in are:

  • Australian shares
  • International shares
  • Real assets (investment in assets such as property, infrastructure or natural resources in Australia or overseas)
  • Alternative assets (such as hedge fund or private equity investments)
  • Growth fixed interest (investment that target a higher return but may represent a bigger risk)
  • Defensive fixed interest and cash

You may also choose to diversify your investment by customising your investment portfolio across the five investment options. 

When choosing an investment option, it is important to take into account your investment time frames and goals, and your personal risk tolerance for market fluctuations. Further information about the assets and the percentage that each option invests in can be found in the Product Disclosure Statement (PDS) and product guide on the Kogan Super website.

Yes, Kogan Super provides fund consolidation services during the application process and there is a fund consolidation tool on Kogan.com called ‘Find My Super’.

It’s important to check with your old super funds for information regarding any benefits or insurance cover you may lose if you switch super funds. If you have any questions or concerns about the rollover process, get in contact with Kogan Super or seek out professional financial advice if you are unsure whether consolidation is a suitable approach for you.

Kogan Super is a superannuation product provided by Kogan.com. Kogan is an Australian company and online retailer that was founded in 2006 and is currently based in Melbourne. It has been listed on the Australian Stock Exchange since 2016. The company’s portfolio of retail and services businesses includes Kogan Retail, Kogan Marketplace, Kogan Mobile, Kogan Internet and more.

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Written by: Eliza Parry-Okeden | Last updated: August 27, 2019