Choosing a pension account is not just about investment performance. The way your pension is structured can influence transparency, control and confidence throughout retirement.
Many traditional super and pension funds use pooled investment structures. Stockspot pension takes a different approach by giving each member their own portfolio of exchange traded funds held in their name.
Understanding these structural differences can help Australians make more informed decisions about how their retirement savings are managed.
Why does pension structure matter?
At retirement, income often becomes the primary focus. At the same time, visibility and trust in how money is invested can become more important than ever.
Pension accounts generally fall into two broad categories:
- Unitised funds
- Separately managed portfolios
In a pooled fund, members buy units in a shared pool of assets. In a separately managed portfolio, members have been directly allocated underlying investments.
This distinction affects how investments are reported, how costs are disclosed, how tax is paid and how much visibility members have into their pension.
How do traditional pooled pension funds work?
Most large super and pension funds operate using a unitised structure.
Under this model:
- Members hold units in an investment option
- Assets are pooled with other members’ money
- Returns are reflected in a unit price
While this structure is widely used, it can limit visibility. Members typically see only unit prices and high level performance figures rather than the underlying investments.
Costs are often embedded within the unit price, which can make it difficult to see how different components of the pension are charged.
What is the impact of embedded costs in pooled funds?
In pooled pension funds, costs may include administration, investment management and operational expenses.
These costs are usually deducted within the fund rather than itemised at the member level. While they are disclosed in product documents, they are not always visible through day to day account activity.
For retirees who value clarity, this can create uncertainty about what is being paid and how investment decisions are made on their behalf.
How is Stockspot Pension structured differently?
Stockspot Pension uses a separately managed portfolio structure rather than a pooled fund.
Each member holds a diversified portfolio of ETFs in a separate account.
This structure means members can see:
- Each ETF held in their portfolio
- All transactions as they occur
- Income distributions and payments
- How the portfolio changes over time
- Tax they have personally paid
This level of transparency can be particularly valuable during retirement, when confidence and clarity matter.
Ownership and transparency
With a separate portfolio, your pension portfolio reflects the actual investments you hold, rather than units in a broader pool.
This can support:
- Clear reporting of holdings
- Greater understanding of portfolio behaviour
- Visibility during market movements
- Tax that is better aligned to what you actually owe – helping you avoid paying the tax incurred by other members
Rather than relying on unit prices, members can see how different asset classes contribute to overall performance and income.
Personalised portfolios vs one size fits all options
Some traditional MySuper and pension options invest members into the same asset pool regardless of individual circumstances.
Stockspot pension portfolios are constructed based on your age, which determines factors such as:
- Stage of retirement
- Risk tolerance
- Income needs
While the investment framework is rules based, portfolios are not pooled. Each member’s pension reflects their chosen settings rather than a standardised option.
Managing income and investments together
In retirement, income withdrawals and investments are closely connected.
With pooled structures, income is paid from the fund as a whole. In an individual portfolio, income is generated from the underlying investments held in the account.
This integrated view can help members understand how income payments relate to portfolio composition and market conditions.
Digital access and ongoing visibility
Technology plays an important role in retirement management.
With stockspot pension, members can access an online dashboard that shows:
- Portfolio holdings
- Income payments
- Account balance
- Historical activity
This information is updated regularly and presented in one place, reducing the need to interpret complex statements or unit pricing.
Ongoing support
While the experience is digital, support remains available with Stockspot.
Licensed Australian advisers can assist with:
- Pension setup
- Setting up your Income payment frequency
- Portfolio questions
This combination of digital access and human support can help retirees feel supported throughout different stages of retirement.
What is the right pension structure for you?
There is no single pension structure that suits everyone.
Some Australians prefer the familiarity of large pooled funds. Others value direct ownership, transparency and visibility into their investments.
Understanding how different pension structures work can help retirees choose an approach that aligns with their preferences, confidence level and retirement goals.
