Superannuation commonly known as Super Fund is a fund designed for Australians to enable them to create a safe retirement plan with their income.
The government has designed the Super Fund to be partly compulsory and both employers and employees to make superannuation contributions.
Currently, the employee contribution rate is set at 9.5% and is going to see a gradual increase from 2021. There are several types of Super Funds, i.e. Super Fund, ERF, declined benefit fund, self-managed super fund, corporate fund, public fund and more.
A Super fund can provide you with investment opportunities and protect your future, to gain some understanding of how to choose the right super-fund for you and your family, please read below:
There is an annual fee for keeping a super fund. To maximise your savings option, you should check fees of different types of accounts as well as the differing types of Super Funds and then choose the one with a minimal fee or the one that seems the most suitable for you.
The fee is deducted from your savings, so choosing the account wisely on the basis of a fee will help you maximise your savings. However, it might be a mistake to choose your super fund according to free structures alone.
Investment portfolio and tax implications should also be a consideration.
Super funds do not just offer a savings account, but there could be several benefits included, i.e. insurance and interest rate.
Before choosing a super fund check which super fund could maximise the financial benefit and provide you and your family with maximum financial protection.
Your super fund savings and investment can be affected positively or negatively by market trends.
Before deciding on choosing the right super fund for you, do background research on super resources that have proven to be efficient and well performing over the years.
Different Super funds offer distinct benefits and services; you should review all the services offered by various funds before deciding on which super fund to choose.
One fund might offer all the services you need but another fund might have extra services that you don’t need, but you will have to pay for if you choose it. So choose wisely and pay wisely for your super fund.
It’s important to note that if you do not choose a super fund at the commencement of a new employment, your employer will select a default super fund for you.
So, it is in your best interest to be aware of the super funds that are available and services offered so that you may choose your own fund rather than have them chosen for you.
Most super funds offer a lifetime disability insurance and income protection. Before choosing a super fund to assess if your super fund is offering coverage or not and then choose accordingly.
The point of choosing the right super fund is to maximise the benefit for you and your family to choose a fund that offers maximum benefit.
A super fund is a way to protect your income and the future of yourself and your family. If you are not sure about which super fund to choose after conducting background research, then it would be a good idea to seek professional help and determine the right fund.
If you don’t choose a super fund yourself then automatically MySuper is usually chosen for you, it’s the most straightforward super account with a lower fee and simple features.
However, since the super fund is for protection of your monetary future you should choose it yourself and choose it wisely.
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General Advice (Tax) Warning (Australia)
This information (including taxation) is general in nature and does not consider your individual circumstances or needs. Do not act until you seek professional advice and consider a Product Disclosure Statement.