Factors to take into consideration for your super
It is important 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.
Determine if your super fund is underperforming
The government is making this much easier for you. Under the new changes proposed in the budget, MySuper products will undergo an annual performance test. If a fund is underperforming then they will need to inform their customers, and if they continue to underform 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 try to look at the long-term performance of a superfund and how it compares to other ones.
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, then they will have higher fees. You should evaluate whether you are willing to 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.
The information above is factual in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser.
Disclaimer: This article contains general information only. Regrettably, no responsibility can be accepted for errors, omissions or possible misleading statements or for any action taken as a result of any material in this guide. It is not designed to be a substitute for professional advice, as such a brief guide cannot hope to cover all circumstances and conditions applying to the law as it relates to these items.