Choosing a super fund is one of the most important financial decisions you will make during your working life.
With the difference between a top fund and a poorly performing one potentially adding tens of thousands of dollars to your retirement nest egg, choice of fund deserves careful consideration.
Whether you are self-employed or an employee receiving compulsory Superannuation Guarantee (SG) payments from your employer, you can generally choose your fund, with some exceptions. Some people covered by industrial agreements or members of certain defined benefit funds may not have a choice.
These days most super funds are open to all comers, or what is called public offer, but not all. For example, some companies offer low-cost funds that are restricted to their employees.
Other types of funds may attract certain types of members for historic reasons, such as public servants or members of a trade union, but now accept all-comers.
Wealthier individuals and families, including those who want to hold business or investment property inside their super fund often prefer to run their own self-managed super fund (SMSF).
Whatever your circumstances, it’s important to canvass all your options before you make your final selection. It’s also worth remembering that your choice of fund is not a life sentence. If you are unhappy with your fund for whatever reason, you are free to switch super funds provided you have choice.
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