Which Super Fund Is Best For Me?
Hardly a day seems to go by without superannuation being featured in the popular media.
We are constantly bombarded with advertising that bestows the advantages of one fund over another, with much of the focus being given to short-term investment performance.
Of course, the question of fees charged by super funds is never far from the front page.
But you may well ask, which is the best super fund for me?
With the level of complexity of superannuation and super fund offerings constantly growing, the task of selecting a suitable fund can be very taxing for the lay person.
For many Australians, engagement with the superannuation system is quite low and the idea of following the crowd and having employer superannuation contributions made to the employer’s “default fund” is an easy option.
But, is the default fund the most appropriate fund?
Many superannuation funds open to members of the public offer an extensive array of features and investment choices.
Generally the more “bells and whistles” a fund offers, the higher the fees. On the other hand, more basic offerings may result in lower fees.
A person with fairly simple superannuation needs may be adequately served by a fund that can accept employer and personal contributions, provides some basic life insurance cover, and offers a limited number of investment options.
For someone with more sophisticated needs, a fund that offers an extensive range of investment options, the ability to not only accumulate retirement savings but also pay a pension, provide binding death benefit nominations, and tax the fund at the individual member level, may be the ideal solution.
Selecting an appropriate fund can be complex. Having a qualified financial adviser review your present superannuation situation and arranging to consolidate multiple superannuation accounts will go a long way towards ensuring your super is best matched to your circumstances.
