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Home / Super funds / Choosing a super fund

Choosing a super fund

Choosing a super fund

If you’re an employee, you’re eligible to choose the super fund that your employer pays your super guarantee (SG) into, provided you’re in one of the three categories below.

  • You’re employed under a federal award.
  • You’re employed under another award or workplace agreement that doesn’t require superannuation support.
  • You’re not employed under an award or industrial agreement. This includes contractors who are primarily paid for their labour.

Learn more about whether you can choose your super fund.

If you are eligible to choose your super fund, there are five potential options (though not every option is available to everyone).

  • Retail funds: These are funds run by financial institutions. They’re generally open to anyone.
  • Industry funds: These funds are generally designed for people who work in a particular industry, but some industry funds will allow anyone to join.
  • Public sector funds: These funds are generally only open to government employees.
  • Corporate funds: These funds are usually only available to employees working for a specific employer.
  • Self-managed super funds (SMSFs): These are funds where you have more responsibility in terms of administration, compliance and investment decisions.

There is a wide variety of super funds available in the market, and choosing your fund is an important decision. It’s important to compare your super fund options in relation to your individual financial circumstances and goals. Key factors to consider when choosing a super fund include its performance history and the fees it charges its members.

Your employer will likely provide you with a Superannuation Standard Choice Form when you commence your employment with them. Alternatively, you can download this form from the Australian Taxation Office’s website.

Choosing an investment option

Choosing an investment option within your super fund is an equally important decision, though it’s one that many Australians neglect. Around 80% of Australians with superannuation accounts have their money invested in the default option, which is where you’re placed if you don’t choose an investment option.

Default options are usually ‘balanced’ or ‘growth’ investments and normally have around 60-80% of their funds invested in growth assets such as shares and property. These options are designed as an appropriate investment strategy for a large number of members across the many years they will be saving for their retirement.

However, your fund’s default option may not be best for your particular circumstances and risk profile. It’s important to understand that different types of investments have different levels of risk. In general, the higher potential investment return, the higher the risk, and vice versa.

It’s important to regularly assess your investment option over time as your circumstances change and to make a switch if necessary. For example, you may want to choose a different investment option in retirement if you’re receiving a pension.

Set out below are the latest articles that relate to choosing a super fund.

PremiumHow to create an investment portfolio in retirement

How to create an investment portfolio in retirement

May 24, 2022

By the time you retire you may think you know a thing or two about investing. But retirement raises new challenges, especially when it comes to structuring your income.

PremiumIs it time to change your super investment option?

Is it time to change your super investment option?

March 15, 2022

Your current investment option plays a big role in determining the investment return your super receives each year. Maybe it’s time to take a closer look.

PremiumRisk profiling and your investment choice

Risk profiling and your investment choice

March 14, 2022

We all want a decent return on our investments, but it’s important to understand how much risk you can tolerate along the way.

PremiumHow the 10/30/60 Rule can help achieve your retirement plans

How the 10/30/60 Rule can help achieve your retirement plans

October 5, 2021

The 10/30/60 Rule shows it’s just as important to use a carefully developed investment strategy in retirement as it is during your working life.

YourSuper comparison tool review

YourSuper comparison tool review

July 16, 2021

In this video we look at the ATO’s new comparison tool for MySuper funds. In short it’s an OK start, but it’s not quite providing enough useful insights yet.

The Superannuation Standard Choice Form explained

The Superannuation Standard Choice Form explained

July 1, 2021

If you want to exercise your right to choose a super fund, you must complete the Standard Choice Form that your employer gives you, and return it to your employer.

Selecting your super fund: Can I make the choice?

Selecting your super fund: Can I make the choice?

September 2, 2020

Uncertain about whether or not you can choose your own super fund? Check out our simple guide to the current fund choice rules.

PremiumWhat is a growth asset? Time to set some standards

What is a growth asset? Time to set some standards

August 3, 2020

It’s been a long time coming, but a group of superannuation industry professionals is proposing a set of standards to categorise growth and defensive assets.

Balanced, Growth, Defensive: What’s in a name?

Balanced, Growth, Defensive: What’s in a name?

August 3, 2020

A rising chorus of superannuation industry professionals agree the current labelling of super investment options is past its use by date, but that’s where the agreement ends.

PremiumHow to change your investment option: 6 points to check before you switch

How to change your investment option: 6 points to check before you switch

January 1, 2020

If you’re unhappy with how your super savings have grown, it’s worth considering whether you’re in the right investment option in your super fund. To help you work through the process of making an investment option switch, check out our simple explainer.

Premium3 steps to making a complaint about your super fund

3 steps to making a complaint about your super fund

November 8, 2019

If you have an issue with your super fund, there are steps you can take that will lead to the best chance of resolution.

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