How to create an investment portfolio in retirement
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.
Home / Super funds / 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.
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).
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 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.
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.
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.
We all want a decent return on our investments, but it’s important to understand how much risk you can tolerate along the way.
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.
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.
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.
Uncertain about whether or not you can choose your own super fund? Check out our simple guide to the current fund choice rules.
In this video Tracey Spicer talks to Associate Professor Banita Bissoondoyal-Bheenick from RMIT about the importance of choosing the right investment option for you, not just through a pandemic, but for the long-term.
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.
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.
In this video interview Mano Mohankumar, Senior investment research manager at Chant West, shares some insights on how super funds performed in 2019, the outlook for 2020, and what to consider when choosing a super investment option.
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.
If you have an issue with your super fund, there are steps you can take that will lead to the best chance of resolution.
SuperGuide is Australia’s leading superannuation and retirement planning website.
Superguide Pty Ltd ATF Superguide Unit Trust as a Corporate Authorised Representative (CAR) is a Corporate Authorised Representative of Independent Financial Advisers Australia, AFSL 464629.
All information on SuperGuide is general in nature only and does not take into account your personal objectives, financial situation or needs. You should consider whether any information on SuperGuide is appropriate to you before acting on it. If SuperGuide refers to a financial product you should obtain the relevant product disclosure statement (PDS) or seek personal financial advice before making any investment decisions.
© Copyright SuperGuide 2009-22