Make the right choice of super fund with our easy-to-understand guide!
Choosing the right super fund is one of the most important financial decisions you’ll make. Your superannuation is likely to be one of your largest assets, so it’s essential to ensure it’s working for you. But how do you know if your current fund is right for you? Let’s explore a few key things to check and how to make sure you’re getting the most out of your super.
1. What is your super fund’s performance over time?
The first thing to check is your fund’s long-term performance. Super funds are about long-term growth, so it’s important to see how your fund has performed over 5, 7, and 10 years. Keep in mind that a single year’s poor performance doesn’t necessarily indicate a bad fund—it’s the longer-term averages that matter. Compare your fund’s performance to similar funds using comparison tools, such as the Australian Taxation Office’s YourSuper comparison tool at their website.
2. What fees and costs are you paying?
Fees can have a significant impact on your final retirement balance, so check the fees your fund charges. These might include administration fees, investment fees, and insurance premiums. Even a small difference in fees can make a big difference over time, so use tools like Canstar’s super comparison to compare the costs of different funds.
3. Do they have investment options?
Does your fund offer investment options that match your risk tolerance and financial goals? Some super funds allow you to choose from a range of investment options, from conservative to high-growth. You can also check whether your fund invests in areas you care about, such as socially responsible or ethical investments. SuperRatings can help you compare funds based on their investment offerings.
4. Does your Super provide insurance?
Super funds often include life insurance, total and permanent disability (TPD) cover, and income protection insurance. However, it’s essential to check if the insurance your fund provides suits your needs. It’s also worth comparing whether you could get a better deal on insurance outside of your super. For more guidance on insurance within super, visit the MoneySmart website.
5. What is their customer service and access?
Good customer service matters when it comes to your super. If you’re having trouble understanding your account, accessing your information, or getting questions answered, it may be time to look elsewhere. Many funds now offer online portals or apps to make it easy to track your super. Research what your fund offers and compare it with others at SuperGuide.
6. Where are they investing your super?
If sustainability and ethical investing are important to you, you might want to explore how your fund invests your money. Some funds focus on ethical investments, avoiding industries like fossil fuels or weapons. The Responsible Investment Association Australasia (RIAA) provides resources on finding funds that align with your values at their website.
Taking Action
If, after reviewing these factors, you feel your super fund isn’t the right fit, switching funds is easier than you might think. You can roll over your super to a new fund online or through your new fund’s website.
Taking the time to review your super fund regularly can make a significant difference to your financial future. After all, it’s your money—make sure it’s in the right place. Weigh up your options and learn if you Should Get Insurance Through Your Super Fund. And here is our guide for What to Expect from Your Super Fund—and What to Do If You’re Not Happy.
