Greetings! I have been retired 9 years. I am self funded retiree. I get my payments fortnightly. When the super company (Aware), withdraws my payment it takes 3 to 5 days to deposit into my bank account. So my query is where does the money goe for that period? Short term money markert perhaps, BUT who benefits from those funds. In practise i loose earning capacity from the day the funds are withdrawn till deposited into my bank account.
Secondly and more importantly how many other retirees are experiencing this happening, where is the “interest” going? Or is this an institutional scam?
Have others experienced this? Or are we expected to sit there and “absorb” this? After all i pay fees to Aware to “manage” my account.
Welcome to the Community Proinasis.
Did you ask Aware for an explanation? What did they say?
No where. It is likely your super fund processes transactions in batches every day or so. Likewise with your bank. Hence he 3-5 day period. Add in weekends where batch processing is unlikely to occur.
Check to see if the super fund and your bank subscribe to Osko, as transfers would be more or less instantaneous
There is an urban myth that someone puts the monies in a short term investment of some sort making a lot of money. This is a myth and doesn’t happen. No one makes money from the delay in transfers. The only impact may be a minor loss of interest income by the monies owner due to the delay.
Hi,
I am experiencing the same delay in payments. After being retired for 5 years my fortnightly payments from Aware were withdrawn from my super account on Tuesday and available in my bank account the next day. This has since changed with their “system update”. I queried them about this, recently, and they told me that it was because they are now using true unit pricing which is at least 2 days behind. I still don’t understand how this would affect the fortnightly payment as the unit price reflects on the remaining super balance and not the pension payment. The payment still is withdrawn on Tuesday (am) and now hits my account late Thursday night. Being an ex bankie I know that someone is benefiting from my payment and it isn’t me.
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Welcome to the Community @Ryder.
Opaqueness is something many organisations rely on to keep the “lesser ones”, or however they may refer to us as, in the dark.
Hi Ryder,
I agree. So Do you think there would be any benefit from changing the payments from fortnightly to monthly?
The obvious think that pops into my mind is that how many “payments” are happening every week or whatever? That period of time that the funds are deducted from yours, mine and perhaps thousands of Aware accounts to the depositing into account is very questionable. But the big question is why t he change? Are Aware member benefiting from this? These questions need addressing by Aware. Especially when you consider their fees that are deducted from accounts each week.
