Choosing another Super fund that suits you better can feel so overwhelming that perhaps you keep putting off the decision to research different funds.
It’s not something commonly taught at school, despite it being part of most of our lives – from the very moment we start our first job. Maybe you chose the default super associated with your first job. Perhaps you are now curious about how technology is changing with financial products and there may be a better choice to suit you. Whatever your reasons are, here are the main things to consider when looking for a new Super fund.
Access and Transparency to Funds
The importance of Superannuation has come into light in recent years, as technology and legislation now allow us to have more control of our retirement investments than ever before. However, not all Super funds have caught up with this so some of the questions you might want to ask yourself include:
- How hard is it to access your Super balance and performance?
- Are the fees and/or insurance premiums easy to understand and visible?
- Does the portfolio selected in your Super fund align with your values, risk tolerance and goals?
You’d be surprised to know some funds may still only send paper statements every 6 months, so it’s important to understand how much control you feel like your current Super fund is giving you and what else could be out there. For example, Raiz Invest Super allows their users to access and control their Super through an easy-to-use App or Website, where you are able to view everything including your balance, performance, statements and fees. You are also able to make changes such as your portfolio, personal contribution or enable Raiz Rewards for your Super. See more on Raiz Invest Super below on investment risks and fees.
Comparable Fees
In Australia, it is now a legal requirement for Super funds to show fees based on a $50,000 super balance as an example in their product disclosure statement (PDS), so it can be compared fairly and easily as apples to apples. This is like how supermarkets have to show you the price per 100ml, 100g or per sheet if different brands sell different product sizes. This now makes it easier for you to compare Super fund providers side by side. Power to the customer!
Life Insurance options
Did you know if you have more than one Super fund and you’re paying for more than one insurance premium that only one life insurance policy may be claimable? This is a good incentive to rollover into one account, which will save fees in the long run. While most people are used to assuming life insurance is automatically included when signing up for superannuation, some Super funds don’t offer one at all. Considering this is pre-tax money, with premiums being taken from your super contributions versus your wage or salary, if life insurance is something you consider important, it might be worth looking to see if your super provider offers life insurance.
Under the new law, Super funds will cancel insurance on inactive super accounts that haven’t received contributions for at least 16 months. In addition, Super funds may have their own rules that require the cancellation of insurance on super accounts where balances are too low. These new rules have passed through to better protect Australians and give you better control when it comes to finding a suitable Super fund for you.
How old were you when you got your first super account?
If you’re like most Australians who started with a part-time job and agreed to the default Super fund, this may no longer suit your current financial situation or needs. These changing financial situations include getting a new job, getting married, buying your first home, having children, or even getting a promotion 🙏 which are great milestones to evaluate your current Super fund. The default Super fund you picked as a teenager or young adult may not have an investing strategy that aligns with your current social values, such as reductions in CO2, or providing a socially responsible themed set of portfolio choices.
Features that allow you to seamlessly do personal contributions
A personal super contribution is a voluntary contribution you make outside of your employer doing involuntary contributions. A key benefit to this is that you may be able to claim a tax deduction on your voluntary contributions so more of your money can go towards your future than if you invested with your after-tax money. Some funds may have additional features to make the most of these contributions.
For example, Raiz Rewards allows you to voluntarily contribute your cash back from your everyday shopping as investments without dipping into your current budget or expenses. Please consult a tax advisor to ensure you are compliant with the total amounts of voluntary contributions you make over and above what your employer contributes on your own behalf.
Track Record and Innovations
One of the main things people consider is the fund’s track record. However, it’s important to note that past performance is no indication of future performance. This means that it is also worth considering how Super funds are keeping up with the latest innovations and technology to manage your super and improve the user experience for you.
For example, Raiz is proud to have won the Best FinTech Superannuation Service/Platform at the 2020 FinTech Awards 😊
Switching super is easy and free
It has never been easier to switch Super in Australia. With no exit fees to switch from one Super fund to another, and in the coming months the re-introduction of SuperMatch, this is a great time to consider finding a better Super fund that suits you.
To see the Raiz Invest Super fees, click here. To read the Raiz Invest Super PDS, click here.
In the meantime, if you are considering switching and rolling over your fund(s), you can contact the Super fund for more information. For example, if you were considering Raiz Invest Super, you can contact the customer support team on support@raizinvest.com.au or via 1300 754 748 and the team can answer your questions or request the information needed to finish the process.
Feeling in control of your Super can be worth the effort and give you the peace of mind towards your retirement!
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Important Information
If you have read all or any part of our email, website, or communication then you need to know that this is factual information and general advice only. This means it does not consider any person’s particular financial objectives, financial situation, or financial needs. If you are an investor, you should consult a licensed adviser before acting on any information to fully understand the benefits and risk associated with the product. This is your call but that is what you should do.
You may be surprised to learn that RAIZ Invest Australia Limited (ABN 26 604 402 815) (Raiz), an authorised representative AFSL 434776 prepared this information.
We are not allowed, and have not prepared this information to offer financial product advice or a recommendation in relation to any investments or securities. If we did give you personal advice, which we did not, then the use of the Raiz App would be a lot more expensive than the current pricing – sorry but true. You therefore should not rely on this information to make investment decisions, because it was not about you for once, and unfortunately, we cannot advise you on who or what you can rely on – again sorry.
A Product Disclosure Statement (PDS) for Raiz Invest and/or Raiz Invest Super is available on the Raiz Invest website and App. A person must read and consider the PDS before deciding whether, or not, to acquire and/or continue to hold interests in the financial product. We know and ASIC research shows that you probably won’t, but we want you to, and we encourage you to read the PDS so you know exactly what the product does, its risks and costs. If you don’t read the PDS, it’s a bit like flying blind. Probably not a good idea.
The risks and fees for investing are fully set out in the PDS and include the risks that would ordinarily apply to investing. You should note, as illustrated by the global financial crisis of 2008, that sometimes not even professionals in the financial services sector understand the ordinary risks of investing – because by their nature many risks are unknown – but you still need to give it a go and try to understand the risks set out in the PDS.
Any returns shown or implied are not forecasts and are not reliable guides or predictors of future performance. Those of you who cannot afford financial advice may be considering ignoring this statement, but please don’t, it is so true.
Under no circumstance is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz Invest or Raiz Invest Super.
This information may be based on assumptions or market conditions which change without notice and have not been independently verified. Basically, this says nothing stays the same for long in financial markets (or even in life for that matter) and we are sorry. We try, but we can’t promise that the information is accurate, or stays accurate.
Any opinions or information expressed are subject to change without notice; that’s just the way we roll.
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(ABN 26 604 402 815).
