A clear guide on evaluating your superannuation account and changing when they’re not performing.
When it comes to your superannuation fund in Australia, it’s important to remember that this isn’t just a passive account where your money sits and grows. It’s your nest egg, your safety net for retirement, and potentially one of the most significant financial assets you’ll own. As such, you should expect a certain level of service from your super fund.
Let’s explore what you should be looking for and what steps to take if you’re not satisfied with your current provider.
1. Clear and Accessible Communication
One of the most basic expectations you should have from your super fund is clear, accessible, and timely communication. This includes regular updates on your account balance, investment performance, and any changes in fees or terms. You should receive annual statements that are easy to understand, detailing contributions, investment returns, fees, and the insurance cover within your super. Your fund should also provide online access to your account, allowing you to check your balance and transaction history at any time.
If your fund fails to communicate clearly or you struggle to get answers to your questions, this is a red flag. A lack of transparency can indicate deeper issues, such as hidden fees or subpar investment performance.
2. Responsive Customer Service
Good customer service is essential. You should be able to contact your fund easily—whether by phone, email, or online chat—and get prompt, helpful responses. Whether you have a question about your balance, need to change your details, or want to understand more about your investment options, your fund should assist you quickly and professionally. A good fund should also offer guidance on how to maximise your retirement savings, including providing tools, calculators, and possibly access to financial advice.
If you find yourself on hold for hours or dealing with unhelpful responses, it’s worth considering whether your fund is prioritising your needs.
3. Competitive Fees and Costs
While all super funds charge fees, these should be competitive and aligned with the services provided. Fees can significantly impact your retirement savings over time, so you should expect your fund to be transparent about their fee structure and how these fees are used. Low fees are desirable, but not at the cost of poor service or investment performance. It’s essential to weigh the cost against the value you receive.
If you notice excessive fees that aren’t justified by the service or performance, it might be time to shop around for a better option.
4. Strong Investment Performance
While past performance is not always indicative of future results, your super fund should have a track record of delivering competitive returns relative to its peers. They should offer a range of investment options that suit different risk profiles and life stages, allowing you to tailor your super to your personal goals and risk tolerance.
If your fund consistently underperforms the market or its peers, consider it a sign that you might need to explore other options.
What to Do If You’re Not Happy with Your Super Fund
If you’re not satisfied with your super fund’s service levels, here’s what you can do:
- Contact Your Fund: Start by voicing your concerns directly to your super fund. They may be able to resolve your issue or provide better service once they understand your needs.
- Review and Compare: Take some time to compare your current fund with others on the market. Use tools like the Australian Government’s YourSuper comparison tool at www.ato.gov.au/YourSuper to see how your fund stacks up against others in terms of fees, performance, and service.
- Seek Professional Advice: If you’re unsure about switching or want to optimise your super, consider speaking with a financial adviser. They can provide personalised advice based on your financial situation and retirement goals.
- Switch Funds: If you find a better option, switching super funds is relatively straightforward. Ensure you understand any exit fees and compare them against the long-term benefits of switching to a fund that better meets your needs.
Your superannuation is too important to leave to chance. Make sure you’re getting the service, performance, and value you deserve to build a secure financial future.
