A guide to reviewing your super
Choosing a super fund is a key long-term investment decision. It’s also a process you should regularly review to ensure you’re in the best position to support your retirement years.
There are a few things you need to know when choosing or reviewing a super fund. It’s extremely worthwhile doing your research and asking around before you commit yourself.
Things to compare – key points tolook for include the following:
- Fees – the lower the better, but make sure you balance this against other aspects such as performance.
- Investment options – make sure there are options that suit your needs and your comfort with the risk involved.
- Extra benefits – if you are an employee, your employer may pay more than 9.5 per cent for certain super funds or if you make extra contributions yourself.
- Performance – pick a fund that has performed well over the last five years – don’t chase last year's best performer.
- Insurance – see what cover is available and what it will cost.
- Service – call the fund or review their website to see what other services they offer.
Make sure you check your life insurance cover before moving funds. If you change super funds you may not get the same death, total permanent and disability or income protection cover that you had in your old fund. Be particularly careful if you have a pre-existing medical condition or are aged 60 or over. Seek financial advice if you are unsure.
Super comparison websites – there are a range of super comparison sites to choose from including
Reasons to change – You would change super funds to:
- Consolidate your super into one account
- Reduce fees
- Invest in a fund with better services and features
- Get out of a fund that has performed poorly over a 5-year period compared to funds with similar asset allocations
- Leave a corporate fund after resigning from your job (a corporate fund generally only accepts contributions from the employer)
Changing super funds – This is a fairly straightforward process. You just need to fill out a transfer form, which you can get from your super fund, or go to the ATO's information section on transferring your super. You’ll need to provide proof of identity to transfer to another fund; this protects your super from being unlawfully transferred by someone else.