How to choose a super fund
Your super fund plays an important role in building financial security. It’s money that will support you in retirement, and while you cannot normally access your super while you’re in the workforce, there is still plenty you can do to grow your nest egg for the future.
A key step is choosing your own super fund.
Why choose your fund?
Most people receive super contributions from their employer – and this money can either be paid into a fund you nominate or a super fund chosen by your boss.
There are good reasons to select your own fund.
Choosing your own fund makes it easier to keep track of your super throughout your working life. If you change jobs you can take your super with you, without losing any of your super along the way.
Relying on your employer to choose a super fund makes it unlikely your fund will meet your needs. By nominating your own fund you have control over the underlying investments, the fees you pay, your insurance coverage, and your choice of other services available to fund members.
What are the main options?
Super funds can either be professionally managed or you can choose to run your own self-managed super fund (SMSF).
For most people it’s simply easier to invest their super in a professionally managed fund. Choose from an industry fund, which typically focuses on a particular sector such as hospitality or construction; or select a retail fund, run by one of the large financial institutions.
How to compare funds
There are a number of factors to weigh up when it comes to selecting the super fund that is right for you. This is an area where your FinChoice financial adviser can help. We will walk you through the main qualities of a variety of funds to help you choose the one that best suits your needs.