Selecting a super fund is an important decision; it can mean the difference between retiring comfortably or not.
While not all employees can choose their super fund, you are generally eligible to select which fund your super contributions are made to if:
– you are employed under an agreement that does not require super support
– your contributions are paid through a federal or former state award
– you are not employed under an industrial agreement.
Once you have established whether you are eligible to choose your super fund, you should consider the following types of super funds and evaluate which is best for you:
SMSFs are those where the trustee is responsible for managing and making regular contributions to the fund.
– Industry funds
Industry funds generally cater to employees from a specific industry; they may have fewer cost funds and few investment options.
– Corporate funds
Corporate funds are offered to specific corporations or if you are employed by a specific employer.
– Retail funds
Retail funds are offered to everyone and are usually run by investment companies or banks.
– Public sector funds
Public sector funds are offered to state and federal government employees. They generally include a wide range of benefits and allow members to make higher super contributions.
When making comparisons between various super funds, you should look at a number of factors, such as fees associated with each fund, benefits you will be eligible for, opportunities to invest and customer service provided by the fund. Also look for any extra benefits, such as the ability to make higher contributions, and how the fund has performed in the past five years.