Tuesday, 26 October 2021 08:10

Look after your super, so it looks after you. 

Super is a way of saving for retirement. Your employer must pay a percentage of your earnings into your super account, and your super fund invests the money until you retire.

There are lots of different super funds out there, and different types of accounts. Find out how to compare super funds, find your lost super, and consolidate funds into one.

Look after your super

Your super is your money. Look after it by:

• choosing an account with lower fees
• comparing your fund's performance with others
• combining accounts if you have more than one
• checking your insurance before you change funds
• knowing what’s involved before deciding whether to choose an SMSF
• being wary of anyone offering to withdraw your super early

What to look for in a super fund

When you're comparing super funds, weigh up fund performance and the fees you'll pay against other factors such as risk, investment returns, services and insurance.

Performance

Compare your fund's investment performance over at least five years. Consider the impact of fees and costs.

Compare like with like. For example, only compare a balanced option with another balanced option, and try to use the same time period.

Low fees

All super funds charge fees. Fees are either a dollar amount or a percentage, or both. Either way, generally the lower the fees, the better. Fees are usually deducted monthly and also after an action such as switching investments.

Insurance

Super funds typically have three types of insurance for members:

• life (also known as death cover)
• total and permanent disability (TPD)
• income protection

When comparing the default insurance offered by super funds, look for:

• the premium rates
• the amount of cover
• any exclusions or definitions that might affect you

Investment options

Most super funds let you choose from a range of investment options. Options usually include:

• growth
• balanced
• conservative
• cash
• ethical
• MySuper

Some funds will let you choose the weighting of different asset types or direct investments.

Services

Super funds may offer other services which attract special fees. These can be things like financial advice or arranging to split your super following a separation.

This article was originally published by Moneysmart at https://moneysmart.gov.au/how-super-works This information is general in nature. does not take into account your personal situation and does not constitute financial advice. Please refer to any relevant terms and conditions associated with any financial product offering.