Choosing a super fund requires taking multiple things into consideration. Such as its performance, the fees you will be required to pay, details of the insurance, and different investment options that are available.
Performance
Performance is one of the most important things to consider when choosing a super fund. Take a look at how the super has been performing over the years. Compare how one super compared to others, but remember to compare within categories.
Low fees
All funds will charge a fee – this could be amount or percentage or even both. Checking to make sure that you aren’t paying excessively high fees when there are lower cost options is integral. Fees will usually be charged at the end of every month, or actions such as switching investments.
Insurance
Super funds will have three different types of insurance for members: Life (or death cover), total and permanent disability (TPD), income protection. When selecting a super, you should check the premium rates, the amount of cover and any exclusions or definitions that might affect you in the future.
Investment options
Funds will provide you with a range of options as to how you would like to conduct investment. Such as: growth, balanced, conservative, ethical, etc. Some funds may also allow you to choose the weighting of different asset types or direct investments.
Taking all of these factors into account is difficult. Comparison websites for superfunds make this process a bit easier. These websites may have vested interests, so you should take this account before making a decision based purely on one website.
The 2020 Budget also announced provision of ‘YourSuper’ which will be a tool the government creates to compare super products. This might further help in comparing and deciding which super fund you choose or change to.
