Five tips for selecting a super fund

Font Size:

Superannuation is a savings and investment vehicle with the objective of providing funds for your retirement years. It is something most Australians have these days and is an important component in providing a comfortable lifestyle in retirement. Despite this, it tends to not be at the forefront of our minds, probably because it is a life-long investment and we tend to think about the ‘shorter term’.

It is important to review your financial situation regularly and reviewing your superannuation should be an essential part. To ensure your existing fund is appropriate or if you decide to choose another fund to better suit your objectives, there are five handy tips you should consider.

  1. Determine how actively involved you want to be with the management of your superannuation, and if you want to use managed investments through a fund manager or direct investments which you control. If you don’t want to make any decisions about your superannuation fund ensure your employer offers a ‘MySuper’ default fund.
  2. Consider your current situation including your age, your financial situation, your investment time horizon, future needs and objectives, and determine what you wish to achieve with superannuation. For example if nearing retirement, will you need to withdraw your benefit as a lump sum or will you convert the benefit to an income stream? Look at your existing and prospective fund’s asset allocations to see if they match your time frame, future needs and objectives, as well as your risk profile.
  3. Compare the features and benefits the funds offer. Features and benefits can vary between funds so consider what you may require – such as free switching, multiple asset allocation options, online access/control, personal insurance and the availability of income streams from the fund. Don’t choose a fund just because someone you know uses it and it works for them. Everyone’s circumstances are different so only consider your own situation.
  4. Compare the funds overall performance against other similar funds. The performance is effectively the (net) return of the fund and takes into account the fees or costs of running the fund as well as the returns. Set your performance expectations to take into account the fund’s limitations and asset allocation.
  5. Always ensure that your insurance requirements are met and that you can nominate beneficiaries and reversionary beneficiaries, if and when applicable.

For most Australians, superannuation is a key element to providing for retirement and is one of the most important investments we have. Just like making any life or investment decision, you should consider all the relevant aspects and seek professional advice when applicable.

If you require further information on retirement investments and investment in retirement please contact NICRI toll free on 1800 020110, email [email protected] or write to PO Box 1339, Fyshwick ACT 2609. NICRI information leaflets are also available on our websites www.nicri.org.au © or //moneymap.nicri.org.au.

Written by craigha



SPONSORED LINKS

Sign-up to the YourLifeChoices Enewsletter

continue reading

Finance News

How much you can save on electricity in your home state

As we prepare to head into the colder winter months, there is good news for those worried about heating costs...

COVID-19

What is thrombocytopenia, and why did it stop the AstraZeneca jab?

Anthony Zulli, Victoria University; Maja Husaric, Victoria University; Maximilian de Courten, Victoria University, and Vasso Apostolopoulos, Victoria University Australia's medical...

Wellbeing

Ways to manage death anxiety

Winston Churchill once said: "Any man who says he is not afraid of death is a liar." But while it's...

Food and Recipes

Rick Stein's Autumn Vegie Soup

"One of the rather pathetic realities of the fact that so many of the restaurants in France are disappointing these...

Government

Australians give big thumbs down to the public service

Only 27 per cent of Australians believe the public service acts in the public interest and only 22 per cent...

Brain health

Normal tension glaucoma linked to cognitive impairment

Australian researchers say they have established a link between the eye condition glaucoma and cognitive impairment, the state that often...

Lifestyle

Old wives' tales put to the test

Alice Shaw-Beckett, from cleaning company Cleanipedia, dissects 13 old wives' tales related to cleaning and pest control to discover whether...

Travel & Motoring

Consider this when deciding on a roadside assist deal

A reader raised an interesting point that I hadn’t considered before. When she bought her new car, it included -...

LOADING MORE ARTICLE...