Don’t settle for a super fund. Make the right choice with our comprehensive guide.
Superannuation, or “super,” is a cornerstone of financial security in retirement for Australians. Yet, despite its importance, many of us don’t regularly review our super funds to ensure they meet our needs. It’s crucial to evaluate your super fund on three key aspects: investment performance, service, and functionality. Let’s delve into these areas to help you determine if your current super fund is the right fit for you.
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Examine Your Super Fund’s Performance
The primary goal of your super fund is to grow your retirement savings. Therefore, the investment performance of your fund is a critical factor. Here are a few points to consider when assessing performance:
- Historical Returns: Look at the long-term performance of your super fund. How has it performed over the past 5, 10, or even 20 years? Comparing these returns against industry benchmarks and other funds can provide a clearer picture of how well your money is being managed.
- Risk Profile: Ensure the investment options align with your risk tolerance. If you’re younger, you might prefer a growth-oriented strategy, whereas those closer to retirement might lean towards conservative investments.
- Fees and Charges: High fees can erode your returns over time. Compare the fees charged by your super fund with others in the market. Sometimes, a slightly lower-performing fund with minimal fees can be more beneficial in the long run.
Do they provide high-quality service?
The quality of service provided by your super fund can significantly impact your overall experience. Consider these factors:
- Customer Support: How easy is it to get help when you need it? Efficient and accessible customer service is essential. This includes quick response times, knowledgeable representatives, and multiple contact options (phone, email, live chat).
- Member Education: A good super fund will offer educational resources to help you understand your investment options and make informed decisions. Look for seminars, online resources, and personalised advice services.
- Transparency: Your super fund should provide clear and straightforward information about your account. This includes detailed statements, easy-to-understand performance reports, and full disclosure of fees and charges.
What type of digital functions does your fund provide?
In today’s digital age, the functionality of your super fund’s platform can greatly enhance your ability to manage your retirement savings. Key considerations include:
- Online Access: Ensure you can easily access your account online. A user-friendly platform that allows you to check your balance, view transaction history, and manage your investments is crucial.
- Mobile App: Many super funds offer mobile apps for on-the-go account management. These apps should be intuitive and offer the same functionality as the online platform.
- Tools and Calculators: Useful tools such as retirement calculators, investment comparison tools, and personalised projections can help you plan more effectively for your retirement.
Making the Right Choice
Remember, your superannuation is one of your most important financial assets. Regularly reviewing and, if necessary, changing your super fund can make a significant difference in your retirement savings. Take the time to ensure your super fund aligns with your financial goals and offers the best possible performance, service, and functionality for your needs.
Now is also the perfect chance to ask How Does Your Super Fund Stack Up? And learn if you should get insurance through your superannuation fund here.
