super fund

How well does your super fund perform

Gino FarinaMy Financial Health

Have you checked the performance of your super lately? Is all your super combined into the one fund? Do you even know where to start? In light of recent industry changes, now is a great time to look into your super and make sure it’s performing for you.

Superannuation in the Current Climate

In recent times, workers have reacted to the misconduct revealed by the banking royal commission by moving their super savings from bank-linked retail funds to union-linked industry funds. The banking royal commission found multiple instances of excessive fees and inappropriate hawking of products from retail superannuation funds.

Australia’s largest industry fund, Australian Super, says it has received nearly $4 billion in super savings directly from the retail sector in the past seven months. The $37 billion hospitality sector fund Hostplus said membership had jumped a net 350 per cent during 2018.

Top Super Funds Announced by Canstar

Hostplus was named the best performing fund for 2019 by researcher Canstar based on returns over the last seven years, using a balanced portfolio.

Once again, as in past years, not-for-profit super funds – whether industry, public sector or corporate funds – dominated the ranks of the top-performing funds. Further details can be found on their website.

How to Choose the Best Super Fund for You

If you are not covered by industrial agreements or defined benefit funds, then you can choose where your employer’s super contributions go. You should be able to find information on fees, investment options, benefits and performance of a super fund in its product disclosure statement (PDS), that is available on the super fund’s website or you can call the fund to request a copy.

When choosing a super fund, you will need to compare the following:

  • Fees– the lower the better
  • Investment options– make sure there are options that suit your needs and comfort with risk
  • Extra benefits– your employer might pay more if you make extra contributions
  • Performance– pick a fund that has performed well over the last 5 years
  • Insurance– see what cover is available at what cost
  • Service– call the fund or check their website to see what services they offer

Super comparison websites can be helpful when you compare super funds, but you shouldn’t choose your super fund on the website rating alone. Two useful super comparison sites are Canstar and RateCity.

Changing Your Super Fund

You can change super funds by filling out a rollover form from the ATO and sending it to your new fund or by logging on to your MyGov account. Visit the ATO’s keeping track of your super webpage for more information.

How to Track Down Your Lost Super

 Have you kept track of all your super? If you’ve ever changed your name, address, job, or done casual or part-time work, you may have lost track of some of your super.

You can check your super by registering for the Australian Taxation Office’s online services via myGov. This will allow you to:

  • see details of all your super accounts, including any you may have lost or forgotten about.
  • find ATO-held super, held on your behalf when your super fund, your employer or the government couldn’t find an account to deposit your super to.
  • consolidate your super into a single fund.

Need Assistance with Your Super?

Your super is your retirement savings, so it’s important to know what super accounts you have and how much is in them. If you need help choosing a super fund, consolidating or locating your super, contact me today.