26 May 2021
While retirement may be a long way off for some, it鈥檚 never too early to start thinking about superannuation.
Your super is your money. For many, it is the biggest asset after your home. So it鈥檚 important to stay on top of your super and choose a fund that best meets your needs.
ob体育鈥檚 Victorian Regional Commissioner and Chief Operating Officer Warren Day recently joined Raf Epstein, host of ABC Melbourne Drive, for tips on how to manage your super.
Types of super funds
鈥楳ost super funds fall into one of the following : retail, industry, public sector or corporate. They have different features and requirements on who can join鈥�, Warren said.
A self-managed super fund (SMSF) is a private super fund that you manage yourself. SMSFs are different to industry and retail super funds.
鈥�Retail funds are usually run by banks or investment companies. Anyone can join.The company that owns the fund aims to keep some profit.
鈥榃hile generally anyone can join the bigger industry funds, smaller funds may only be open to people working in a certain industry, for example, health. They are profit-for-member funds, which means profits are put back into the fund.
鈥楤oth retail and industry funds also usually offer MySuper accounts. 鈥楳ySuper鈥� is a 鈥榙efault鈥� super account in the super fund, which typically offers lower fees and simpler features so you don鈥檛 pay for services you don鈥檛 need.
聽鈥楶ublic sector funds are for government employees while a corporate fund is arranged by an employer for their employees.鈥�
Choosing a super fund
鈥楳ost people can choose which super fund they'd like their super contributions paid into. You can go with your employer's fund or choose your own.
鈥榃hen choosing a super fund, weigh up the fund鈥檚 performance and the fees you'll pay against other factors such as risk, investment returns, services and insurance鈥�, Warren said.
- Performance - consider how well the fund has performed over the past 5 to 10 years and be sure to compare like with like, For example, only compare a balanced option with another balanced option, and try to use the same time period.
- Fees 鈥� all super funds charge fees as either a dollar amount or a percentage, or both. All other things being equal, fhe lower the fees, the better. Fees are usually deducted monthly and also after an action such as switching investments. Check what other fees may apply for things like insurance or financial advice.
- Investment options (for example, growth, balanced, conservative, cash, ethical, MySuper) - make sure the options suit your investment needs and risk appetite.
- Insurance is generally offered as standard and understanding your insurance (both coverage and cost) might be important, as this can vary a lot between funds.
- Some funds may offer services like financial advice, or splitting your super in certain circumstances, which can attract special fees.
鈥業f you don't (or can't) choose your own super fund, your employer will generally put your super into a ,鈥�
Warren said you can always change funds after you start a job.
He also encouraged listeners who may have more than one super fund to consider consolidating your super and moving all your super into one account.
鈥業t makes your super easier to manage and saves on fees. You can transfer your super for free in a few easy steps. See for more information.鈥�
If you鈥檝e changed jobs or moved addresses, there could be 鈥� held by your super fund or by the Australian Taxation Office (ATO). You can find your lost super online through the ATO.
鈥楽uper can be complex. If needed, seek professional advice from a retirement or financial planner to help identify financial goals and put strategies in place to achieve your goals鈥�, Warren said.
Listen out over the next few weeks for more information on better understanding your superannuation and superannuation funds.