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Look for these features when choosing a super fund:
Performance, fees, and strategy are 3 key features to look for when choosing a super fund. However there are other features as well, which we'll go into these points in more detail later in this guide, or if you're ready to choose a super fund you can use our comparison table below right now.
Need a bit more help choosing? No worries! Let’s take a look at the features you want in a super fund in more detail.
Super funds are basically big investment portfolios, with professionals who invest members’ money on their behalf. Historical performance of the fund, typically expressed as a percentage, is generally a measure of the return on investment the fund has achieved previously. You’ll mostly want to look at the fund’s performance for the last 5-10 years, as long-term performance is a better indicator than short-term performance.
While historical performance isn’t everything and past performance is not an indication of future performance, it's definitely an important factor to look at when choosing a super fund.
As well as performance make sure you take a look at:
As with most fees generally, the lower the better. Consider:
Most super funds offer insurance policies within your account, which are often slightly discounted. Generally, you can get a basic level of insurance cover for:
To compare the insurance cover offered by two different super funds you may want to look at:
All three insurance types can be found through super funds, or outside of superannuation instead. However, they work a bit differently in each case. In very basic terms, you might think of super insurance as the cheap “no-brand” option, and insurance outside of super as the “deluxe brand name” option. Depending on your situation, you might want to have it all inside super, all of it outside super, or a combination of both.
There are various types of super funds which can be put under two different categories – profit for member funds and retail superannuation funds. Although there are still debates going on which category is better, understanding them is much better since their advantages and disadvantages are relative to the needs that you have. Compare the different types of super funds available using our table below.
| Super fund type | Features |
|---|---|
| MySuper | Most employers are required to offer a MySuper fund as a default option for people who cannot (or don’t wish to) select their own fund. These are generally found as defaults, but you may also nominate a MySuper fund. It’s designed to be a safe option for most Australians.
|
| Retail funds | Retail funds are widely-available commercial products, operated by financial institutions such as banks and insurance companies.
|
| Industry funds | These superannuation funds are generally designed for workers in a specific industry, however most are open to everyone to join. They're not-for-profit funds that exist for the benefit of super members only, and aren't part of a wider financial institution. They are owned by members not shareholders.
|
| Self-managed super fund (SMSF) | The do-it-yourself super fund. You are responsible for investing your superannuation, as well as looking after the tax and legal obligations that go along with it. These are explained in more detail in this guide, however it's not recommended that you start an SMSF unless you're a confident investor with a large balance of at least $250,000. |
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Finder's Investing Report 2021 discusses what this year has in store for shares, property, micro-investing and superannuation. Access the report here.
The amount of my superannuation has been decreasing. I didn’t notice before so I change my super fund and I found that it is decreasing as well. What should I do?
Hi Supawan,
Thank you for getting in touch with Finder.
I suggest that you seek financial advice on how your super could increase.
I hope this helps.
Please feel free to reach out to us if you have any other enquiries.
Thank you and have a wonderful day!
Cheers,
Jeni
Hello
My partner is self-employed, 50 years old and never have had a superannuation. Now I try to figure out what he will need.
He works in the computer industry and has not a huge income. Do you have any tipps where he can look for a super or what we have to think about to choose clever the super?
Thank you so much for your help!
Isabelle
Hi Isabelle,
Thanks for leaving a question on Finder.
Your partner who is self-employed can avail of his own choice of the super fund since anyone who is in the workforce can choose any superannuation fund to undertake. You can check which form of contribution and the super fund will work for him. You can also consider speaking to a financial adviser for professional, personalized advice.
Cheers,
Joel