It is essential to pay attention to the details of your super fund to make sure that you get the best out of it for your retirement.
Whether you are choosing your super for the first time or thinking about changing your super because you’re unhappy with it, the following are factors to take into account.
The government is making this much easier for you. MySuper products currently undergo an annual performance test to determine whether or not they are acting in the best interest of you, their members.
If a fund is underperforming, then it will need to inform its customers, and if it continues to underperform two years in a row, then the super fund will be unable to take on new customers. Before this scheme entirely rolls out, you should look at the long-term performance of a superfund and how it compares to others.
The fees for different super funds can depend on the returns that they will provide. For example, if a super fund has higher growth investment options and higher returns, they will have higher fees. You should evaluate whether you will pay higher fees or if this disproportionately impacts your current income.
If you are changing your super, consider any insurance linked to your fund. You might lose this cover if you switch. On the other hand, when choosing your super, ask whether you will have insurance benefits.
Different superannuation funds offer various investment options, ranging from conservative to aggressive. The choice may depend on your risk tolerance and investment goals.
If you have ethical or social considerations, you might prefer a fund that aligns with your values by investing in socially responsible companies.
Consider your long-term retirement goals and how the chosen superannuation fund aligns with those goals.
It’s essential to carefully research and compare different superannuation funds to choose the one that best suits your financial circumstances and objectives. Additionally, it’s a good idea to periodically review your superannuation fund to ensure it continues to meet your needs as your financial situation evolves.