Superannuation Fund Comparisons
Superannuation fund comparisons aren’t easy to conduct, particularly with all the factors you need to take into consideration to find the best super fund.
Why compare super funds? There are typically a few main reasons why you might compare superannuation funds. You either:
- have more than one fund
- want to review the fees
- want to review the returns
- want to review your investment options
- or other personal reasons.
Making the most of the fund you are in can make a huge difference in the long term. In the right fund and with the right combination of superannuation strategies, your retirement savings may have a better opportunity to thrive.
Whatever the reason may be, we’ve outlined some of the main factors you should take into consideration when conducting a superannuation fund comparison.
What to look for in a good super fund
1. Investment Choice & Performance – a fund with a wide range of investment choices will help you spread your risk. This type of investment management is often labeled as ‘diversification’. It may also help you find an investment style which better suits your personal goals and the level of risk you are willing to accept. Just be aware that over the long term that there will be ups and downs in the investment market.
2. Fees – super funds have different fees and these only partly affect your final balance. The type of fund you have does not always mean you will pay fewer fees; you should look at many different funds and see what fees are charged. Obviously the smaller number of super funds you have, the smaller the amount of fees you will generally pay. So if you do have more than one super fund, see if you can consolidate them into one fund.
3. Life Insurance – this can also include TPD insurance and in some cases salary continuance insurance. There are pro’s and cons to holding your life insurance inside super, and it is vital you speak to an xLife adviser before you make any super fund changes. An xLife adviser will typically discuss whether insurance inside super is appropriate for your situation.
4. Service and Reputation – it is important to select a fund with a strong ongoing reputation; and it may also be beneficial to select a fund that offers additional services, or a high level of customer service. These factors can enhance your experience, and can make it easier for you to grow your super.
Picking the best Australian superannuation fund
Picking the best super fund for you involves careful consideration about what you need, want, and also what will offer you the best outcome once you retire.
Apart from the factors we’ve listed above, there are also:
- different types of super funds to consider,
- analysing a super fund’s long term performance and history,
- determining exactly what you want from a fund, and
- how much money you need to retire comfortably on.
Due to the complexity of comparing super funds and the long-term consequences your decision can have, it is important to seek superannuation advice.
Compare superannuation funds
xLife Superannuation Advisers can compare superannuation funds and help you determine which fund is best to meet your retirement needs.
The service we offer is slightly different to traditional financial advisers, in that we can offer you bite-sized amounts of advice when you need it. Our flexible superannuation service is an affordable option for those looking to make small changes to boost their super now.
For an obligation-free chat please contact an xLife Superannuation Adviser on 1300 135 205.
Get your first Superannuation Consultation FREE!
Talk to a Specialist Superannuation Adviser on 1300 135 205 about growing your superannuation today!
December 2011
