How to choose a super fund

Next up in our 'How to series' we tackle the challenge of how to choose a superannuation. Here are some guidelines designed to help you narrow down the options.

So, you have changed jobs… You're starting a new career… Maybe you have received a letter informing you that your current super is underperforming performance tests.  Or simply decided the time is now to choose a super fund that works for you! How should you tackle this? 

First and foremost please note that this article is not financial advice. It is designed to shine a light on a few key areas that are worth considering when it comes to your super. 

If you are unsure, always consult professional financial advice. 

1.) Decide what is important to you

Performance and fees are key - it goes without saying. Maximum performance and the lowest fees, but there is inevitably a trade off, so what else is a key motivator for you? 

  • Do you work in an industry where certain insurance coverage may be better provided by an industry super? 
  • Do you want total flexibility and the ability to choose how your money is broadly invested? 
  • What about sustainability and the impact that your super has on the climate? 

Decide what is important for you first and it will help to narrow the playing field when you are comparing the options. 

2.) Compare your options!

This is where supa steps into the equation. You need a totally transparent and independent view of the landscape. There are numerous providers out there that have less than transparent ratings systems. Take a look and you will be hard pressed to find a fund that hasn't won some sort of award!

If you are using supa use your preferences from point 1 and narrow the field ranking by the factors that are most important to you. At supa we use data you can trust from accredited regulators such as APRA (government regulator) and independent ESG research from Market Forces. Have a quick play and you will see it is not hard to nail down the options. 

3.) Take stock

Once you are happy with your choice of fund, we don't recommend jumping blindly into their ‘MySuper” product - just because that is what we compare for the time being. Everyone's situation differs. Use our (upcoming) service to get in touch with the fund and feel them out. It’s like a first date, see how they act, do they have a different product more aligned to your personal situation, chat to them about the insurance and whether it's suitable, and make sure you take the correct strategy with risk exposure. They can provide you with tailored advice specific to your situation to make sure you are in the best position to hit your targets.

4.) Track performance

Finally, keep tabs on your investment (ideally with supa once we get up and running)! Super funds are creating some lovely apps showing you their returns, but they don't show the competition! I doubt you manage your stocks, crypto, or house price without looking at the broader market performance… So why have we been happy to do it with one of the largest investments we will ever make? We don't suggest you switch funds every year, absolutely not. But you deserve to know if your fund starts underperforming the competition, whether its in 3, 5, or 10 years time.

Hit up the next how to article to learn the different ways to change your super.