Superannuation. If someone asked you to describe it, you would probably say it’s complicated and confusing, but a necessity so that you can retire without financial worry. So how do you work out what type of super fund to pick? Does it matter how they grow your super? And are you paying too much in fees?
We understand that super can seem complicated, but you don’t have to be an expert to get on track to enjoy a purposeful retirement later on in life.
To help you get started, our Christian Super Member Care Team have created this guide with their top 5 tips to help you choose the right super fund for you. You can download our guide here, but here is a quick summary:
Disclaimer: The content of this guide includes advice that is general in nature and does not consider your personal situation. Christian Super encourages all people considering their options in retirement planning to seek out qualified professionals who can provide specific personal advice.
Tip 1 – Pick a fund type that aligns with your goals
The first thing to consider when choosing a super fund is what type of fund to go with. You might think that all super funds are pretty much the same but there are different types, each with their own pros and cons. The most common super fund types are retail funds and industry funds. So what’s the difference?
Tip 2 – Understand how different super funds grow your super
If you want confidence that your super is invested in what you believe in, then you might want to consider an ethical super fund. These types of super funds actively make efforts to screen their investments to make sure they align with their values and beliefs.
Tip 3 – Pick an investment option that’s right for you
There are two ways to decide. You can either consider your long-term goals and the level of risk you are willing to embrace to reach your goals, or you can pick an investment option based on your life stage.
Tip 4 – Understand how fees work and what to look for when comparing fees
When comparing the fees and costs between super funds, you can either check super fund websites, review Product Disclosure Statements, or you can search for a super fund’s product dashboard, which is a summary of their default MySuper investment option.
Tip 5 – Pick the right insurance for you
Most super funds provide a default level of cover when you join the fund, with premiums deducted from your super account. If you don’t want these insurances, you can notify your super fund. If you do want these insurances, we suggest that you make sure the type of insurance and level of cover is right for you, and also make sure your occupation group is correct.