Not all super funds are created equal. Industry super funds and retail funds charge very different fees, investment performance can vary significantly between funds, and so can insurance cover. The fund you choose to be with can make a noticeable difference to your retirement balance, as AustralianSuper member Lynnsy discovered.
What to look out for when comparing super funds
If you’re comparing super funds, there are you few things to keep an eye out for to make sure you’re comparing apples with apples.
Your fund will charge you fees to manage and invest your money. The amount of fees you’re charged depends on a couple of factors, such as your investment option and the type of fund you’re with, such as an industry or a retail fund. Industry super funds, such as AustralianSuper, are run for members’ benefit, so fees are kept low. Retail funds often charge much higher fees as they have a responsibility to their shareholders and a focus on profit.
The amount of fees you pay over the course of your working life can add up. This can have a significant impact on your overall super balance come retirement.
Long-term investment performance
When you’re looking at different super funds, it can be important to compare long-term performance. After all, super is a long-term investment. So be sure to check not just how the fund is performing now, but whether it has a good track record. For example, AustralianSuper is the number 1 performing super fund over the last 5, 10, and 15 years2.
Net benefit – a measure of how your fund’s performing
Net benefit is what you get when you calculate investment performance, minus the fees and taxes charged by your fund. It’s essentially a truer reflection on how your super is performing, meaning, the higher the net benefit, the more your balance grows.
A fund to support you in retirement
Choose a fund with retirement options which continue to support you when you stop working, or choose to transition to retirement.
AustralianSuper’s account based pension, Choice Income, is an award-winning account with strong long-term performance. It keeps your super invested for potential growth. An account based pension could help your super grow in retirement, while still giving you access to your savings.
Speak to a financial adviser
Before changing super funds, it can help to speak to a professional financial adviser. They can help give you advice on how any potential switch might impact things such as insurance you might have.