The Government’s Choice of Fund legislation, introduced in July 2005 means you can choose a super fund which is most suitable for your financial requirements and most beneficial in achieving your financial goals.
Am I eligible for Super Choice?
Most Australian workers can choose their own fund.
You are eligible to choose a super fund if you are paid under a Federal Award or are not covered by any award or registered agreement and if you are covered by a State award and your employer is a constitutional corporation.
You are not eligible to choose a super fund if you are covered by a State award and you are not employed by a constitutional corporation, are covered by an Australian Workplace Agreement (AWA) or covered by an industrial agreement registered by State award.
Even if you are not eligible, your employer may allow you to make a choice. Speak with your employer about your options or visit the ATO website to find out more.
What should I consider when choosing a super fund?
Choosing a fund to manage your super is an important decision as it could significantly impact your retirement savings, making a difference in tens of thousands of dollars to your final payout, potentially affecting the lifestyle you can lead in your retirement.
Below are a few things to consider when choosing a super fund. If you don’t feel comfortable making a decision on your own, you should consider getting the advice of an independent financial adviser.
When choosing a super fund you should:
- thoroughly understand the current fund you are in and what it really offers you;
- compare investment options and long-term performance (the Australian Government suggests at least a five-year performance evaluation);
- compare all fees including administration fees, contributions fees, exit fees, ongoing management fees;
- beware of commissions. These can be substantial and can make a huge difference to your long-term accumulation of retirement funds. Industry super funds typically do not pay commissions to advisers or service providers;
- research if the fund has a financial adviser or provides financial advice services;
- compare insurance offerings; and
- compare other member services and benefits including access to personal service from field staff and staff in customer service centres and access to ancillary services.
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