The super fund you choose shapes your life after retirement, so research it carefully. Nobody can tell you which fund will suit you, but these guidelines will help you judge whether a fund is right for you.
1. Comparison tools and ratings
The ATO's YourSuper comparison tool lets you compare MySuper products on fees and returns, and shows whether a product has failed APRA's yearly performance test. Independent research firms also rate super funds, which can be a useful guide.
2. The product disclosure statement (PDS)
Every fund must give you a product disclosure statement before you join. It summarises the fund's fees, the cost of insurance, the investment options and more. Compare the statements of different funds to find the one that suits you best.
3. Long-term performance
Compare funds with similar investment options, over several years, and check whether the fund you're looking at does better than the average.
Spreading your investments across different kinds of assets helps protect you if one market falls.
4. Fees
Paying higher fees for a fund that performs the same or worse is a mistake. Fees vary widely between funds and between their investment options, so compare the total cost as a dollar amount on a balance like yours.
5. Insurance cover
Check how much insurance cover comes with the account and what it costs you. Cover through a large fund, often the one your employer chose, can be cheaper than cover you buy on your own.
6. Services
Look at what services the fund offers, such as online access, retirement planning tools and advice. If you want independent advice on which fund to choose, always use a licensed financial adviser.
If you're comparing a large fund with an SMSF, your accountant or a licensed financial adviser can help you weigh them up.