September 22, 2017

A Step-by-Step Guide to Comparing Your Superannuation Fund

For most people, it is essential to start retirement planning as early as possible. This gives them leverage in terms of comparing different superannuation products, and that time is their ally in growing their funds. But with several aspects to look into, how do you compare super funds and choose the right one for you? Here’s a step-by-step guide:

Reminder:

Be wary about the ongoing fees that are being deducted from your fund on a yearly basis.

Step 1: Know the various funds available

In general, if you’re an employee, you can join a super fund through your employer. But you can also do it as an individual. The advantage of being a member of a group is that the fees are lower. Also, your super may have more growth potential than if you join as an individual.

Step 2: Collect personal data

Know your current account balance, level of contributions made during the year, investment options and returns, all fees that you pay, as well as insurance cover. You can get this information from your annual member statement. You can also gain access to these details when you register on your super fund’s website. It may likewise help to use a superannuation calculator, though the results may only be used as your guide. 

Step 3: Check the insurance

Do you have insurance cover on your existing fund? If yes, then make sure if the other fund that you’re considering offers the same type of cover or not. Look into whether you can maintain your insurance cover and for what premiums.

Step 4: Look into investment options

It is important to look into investment options and their performance because at the end of the day, you want to invest in something that offers better growth potential. Check if the fund has a solid investment strategy that’s based on expert analysis, and that you can change options later on with little to zero cost.

Step 5: Know the fees involved

The fees that you need to pay will have an impact on your investment returns. While there are fees to be paid occasionally, be wary about ongoing fees that are being deducted from your fund on a yearly basis. In general, check out all fees that are deducted from your contributions.

Step 6: Seek professional advice

Managing your super fund is a serious matter. Know and understand how it works to get the most out of your super. It also pays to seek help from a qualified individual so you will better understand aspects such as the amount of contributions, type of insurance that you need, fees involved, as well as the investment option that suits your needs and preferences.

Got other ideas on superannuation calculator and retirement planning? Share your tips in the comments section.

About the author  ⁄ Marxa Dillan

No Comments

Leave a Comment

Bitnami