2

My current super fund is closing down so I need to choose a new one. How should I choose a new one, and what resources can I use?

  • If it matters, my current account is small (under $50K), and I'm not contributing to it at the moment while I'm studying full time.
  • In terms of resources, I've found the Infochoice savings comparison site very useful in the past because it's comprehensive, while researching insurance on iSelect is basically useless because it covers so few companies. Is there a superannuation comparison site that is remotely close to comprehensive? (Infochoice only list about a dozen self managed funds unfortunately.)
  • Aside from fees and past/expected returns, what other factors should I consider? I know some funds offer insurance options, which I do not desire at this time.
Improve this question
1
  • 1
    Stick to an Industry Fund instead of a Retail Fund, as with such a small balance the fees will eat up your balance with most Retail Funds.
    – Victor
    Jun 10, 2015 at 10:05

1 Answer 1

Reset to default
2

It sounds like you're in a place where you can (almost) set-and-forget your super.

As Victor said in the comments, you should choose an industry fund instead of a retail fund, so that fees don't eat up your balance (if you remember the TV ads, one of those funds with the logo looking like two hands covering something valuable!)

Industry super funds

You could take the option of a large fund like AustralianSuper, or choose one of the industry super funds on this page.

If I were you, I'd just choose a couple and check their fees and investment options.

It sounds like you're young, so generally a higher risk, higher return investment profile would suit well as over time, you should see your super grow more. Check that the super fund you choose offers this option (I know AustralianSuper does).

Alternatively, there may be a super fund specifically set up for the sector you work in. These can be higher in fees so you might want to check the fees against an industry super fund on the page above to see how they compare.

If you want to keep everything in one place, you could also try your bank's super option. However, the usually slightly higher fees here will probably outweigh the convenience benefits (this is what the industry super fund ads I referred to were all about).

In the end, I wouldn't put too much effort into comparing super options. Compare a few, keep a general eye on how it goes, unless you've got the time to go down the route of an SMSF then you can generally trust that you'll be taken care of by a well-known industry fund. If I was comparing, I'd probably look at AustralianSuper, Hesta and HostPlus.

Improve this answer

You must log in to answer this question.

Not the answer you're looking for? Browse other questions tagged .