Tag Archives: superannuation

What to Consider When Choosing a Super Fund

Choosing a superannuation fund is an important decision, affecting your long-term savings and retirement. All super funds are different, with different features, investment options and fees. If you are looking for your first super fund or want to switch funds, here are a few things to consider when choosing.

Fees and performance

All super funds charge fees, and you want to look for one with the lowest fees. Fees are deducted from your account balance and can have a significant impact on your long-term savings. Superannuation fees can be hundreds or thousands of dollars, so it is essential to compare fees across different providers when choosing. Additionally, compare fees against the funds’ performance over at least five years.

Risk appetite

Everyone has a different appetite for risk – how much risk are you comfortable with? Most superannuation funds will offer a variety of investment opportunities, catering for different risk appetites, ranging from conservative to high risk. Consider and compare funds that provide similar investment strategies that are suitable for your lifestyle and age.

Insurance

Many superannuation funds offer insurance that generally have cheaper premiums than those available through insurance companies. Typically, this includes life insurance, total and permanent disability cover, and income protection. Premiums are deducted from your superannuation balance. Consider your lifestyle needs, but make sure you fully understand what you are covered for and the costs involved.

Usability

Depending on your needs, a differentiator between funds is their usability and customer experience. If you plan on checking your superannuation balance often, like you would a bank account, then you should consider a fund that has an easy to use online platform and can be easily contacted, for example with an online chat or through a mobile application.

Superannuation is always changing, so it is essential to do your research and not get complacent. Check-in on your balance now and then, ensuring that employer contributions are being made and your balance isn’t wasting away to fees or underperforming investments.

Take Control of Your Super in 2020

Change your financial future for your better by taking control of your superannuation in 2020. Here are just a few ways that you can start boosting your superannuation to fund your retirement.

Look for lost superannuation

Communication with superannuation funds can sometimes get lost, especially when changing jobs, addresses or your name. If you have more than one super account, you’ll be paying more than one set of fees. Combining all your accounts into one fund will save you thousands of dollars of your career.

Check your payslips

It is a good idea to double-check that your employer is contributing the correct amount into your superannuation fund. The amount on your payslip should equate to 9.5% of your pre-tax ordinary time earnings. If you can’t find this information, check with your employer to ensure they are paying contributions into your account at least quarterly.

Contribute more

You can make payments into your superannuation fund, on top of the 9.5% your employer pays on your behalf. Contributing to your fund can make a big difference to your future. You can make either concessional or non-concessional contributions. Concessional (before-tax) are made before you pay tax, such as the contributions made by your employer or salary sacrificing. Non-concessional are contributions made after-tax, where you made personal contributions into your account from your take-home pay or savings. You can contribute up to $25,000, inclusive of your employer’s 9.5% payment.

Check your insurance cover in your super

Most superannuation funds will offer insurance cover when you join. This can include Income Protection, Death and Total & Permanent Disablement Cover. While insurance through your super can be a cost-effective way to protect you and your family’s future, it can be one of the most significant costs involved. It is essential to check your insurance cover to ensure that it suits your current needs and lifestyle, and does not double up with any cover you have outside your fund.

Get in touch with the team at The Farm Protectors to take control of your super this year.