Mercer Super review

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Mercer Super is a retail super fund. It is one of the largest corporate super funds in Australia. Membership is open to employees of companies who have a Mercer Super corporate fund, or people who want to join the individual section of the fund.

Types of Mercer Super super accounts

Mercer SmartSuper Plan

The Mercer SmartSuper Plan is the main product available to members. It offers the following features:  

  • A number of investment options ranging from plans that enable members to build their own portfolio, to ready-made plans that are pre-mixed combinations of asset classes that target a particular investment objective. Mercer SmartPath, which is the provider’s default MySuper investment option, is one of these ready-made plans.
  • Online and mobile app access to your account.
  • Access to financial planning tools and limited free financial advice.
  • New members can apply for death or death and TPD cover, which Mercer says will be subject to underwriting and acceptance by the insurer.

How to join Mercer Super

Before committing to a particular fund, consider comparing your options with Canstar and checking out our choosing a super fund checklist. You can also read the Product Disclosure Statement (PDS) and Target Market Determination (TMD) for a Mercer product to help you decide whether it is suitable for your needs.

If you decide to join Mercer you can complete an application form on the provider’s website or via its helpline. You must have a minimum balance of $1,000 to be eligible.

Mercer says if you do not apply to change your insurance cover, the default insurance cover will apply. 

Remember to tell your employer that you’ve joined Mercer. Your employer should give you a Superannuation Standard Choice Form to fill out, sign and return to them.

Mercer FAQs

How is my super invested with Mercer?

How your money is invested with Mercer will depend on which of its investment options you select. Here’s an overview of the main investment options Mercer offers.

Mercer SmartPath

Mercer describes this as a ‘set-and-forget’ option that automatically adjusts your level of risk and potential return as you age. It says younger members’ super is invested to target growth via investing in assets such as shares. As a member approaches retirement, the aim becomes increasingly to minimise volatility and to preserve the balance, by investing in defensive assets, such as cash and term deposits.

Ready-made plans

These options are pre-mixed by Mercer with the aim of  providing a diversified portfolio of investments to match a member’s risk appetite. The options are: Mercer Diversified Shares; Mercer High Growth; Mercer Select Growth; Mercer Growth; Mercer Moderate Growth; Mercer Conservative Growth; Mercer Cash.

Sustainable Plus options

These are pre-mixed diversified options that Mercer says include a higher proportion of “sustainability-themed assets”. A range of options are available to cater for members with varying risk appetites.

Sector options

Mercer offers a number of sector-specific investment options that offer a mix of investments within one asset class, such as Australian or international shares, property (Australian or international) and fixed interest.

Mercer Direct

Mercer Direct offers members the ability to invest directly in ASX 300 shares, term deposits and exchange traded funds. Mercer says the aim is to give members flexibility without the need to set up and maintain a self-managed super fund.

If you don’t make a decision as to how your money will be invested, Mercer says members will be invested into its SmartPath MySuper option.

For more details on what each Mercer investment option entails, you can contact Mercer or read the PDS, TMD and other documentation on its website. If you are considering changing how your super is invested, consider seeking independent financial advice to help ensure that any changes are suitable for your situation.

Does Mercer offer an ethical investment option?

Mercer offers a number of sustainability-themed pre-mixed investment options, based on different asset classes and risk profiles: Sustainable Plus Shares; Sustainable Plus Australian Shares; Sustainable Plus Global Shares; Sustainable Plus High Growth; Sustainable Plus Growth; Sustainable Plus Moderate Growth; Sustainable Plus Conservative Growth.

What fees does Mercer charge?

Mercer charges a variety of fees to its members in return for managing their superannuation savings. Here is a roundup of some of the fees Mercer charges on its default SmartPath investment option.

  • Investment fee: 0.44% per annum of the member’s account balance, or 0.38% p.a. For members born before 1959.
  • Administration fees: $18.00 per annum, plus an asset-based admin fee of 0.34% p.a. annum of the member’s account balance, plus an estimated expense allowance ranging between 0.00% to 0.068% p.a.  
  • Indirect cost ratio: An estimated fee of between 0.34% to 0.41% p.a. of the account balance.
  • Insurance premiums which would vary depending on the type and level of cover you have.

To learn more about super fees and what the various fees are charged for, read our explainer on super fees.

Bear in mind that other fees may apply. Consider checking Mercer’s PDS for details. You can also compare the annual fees for Mercer’s default investment option to other super funds’ fees on Canstar’s database.

Can I consolidate my super with Mercer Super?

Yes, you can consolidate your super with Mercer Super, once you have opened an account, by logging into your account and following the prompts. Mercer says you will need your Tax File Number (TFN) and two forms of identification.

Explore: How to Combine and Consolidate Your Super Funds

What should I check on my annual statement from Mercer?

To help you stay on top of your super, it may be beneficial to check your regular super statement closely. Here are some of the factors that could be worth paying attention to:

  • Are your personal details up-to-date?
  • Are your nominated beneficiaries up-to-date?
  • Are the super contributions from your employer and/or your voluntary contributions correct?
  • Are your investment asset class choices appropriate for your life stage?
  • Are you happy with the amount you’re paying in fees?
  • Is your insurance still adequate for your needs?
  • Have you decided whether to consolidate your super, after checking whether there is insurance or any other benefits attached to the account you may lose and if you’re comfortable to do so?
  • The big picture – are you happy with your super fund overall?

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About Mercer Super

Mercer Super is owned by Mercer Super Trust, which is part of the Australian arm of financial consultancy company Mercer, operated by global professional services firm Marsh McLennan. Mercer Super Trust states that they serve more than 220,000 super members.

This content was reviewed as part of our fact-checking process.

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Written by: Sean Callery | Last updated: January 10, 2022