Key Takeaways
- Performance: A superannuation performance comparison should consider long term growth, not just short term gains, to see how a fund has performed over time.
- Fees and costs: Even a small difference in fees can make a massive impact on your balance at retirement due to compounding returns.
- Personal Choice: Your super is your future. Making the right choice is about finding a fund that gets you and provides support tailored to your job, needs and goals.
Let's be honest, doing a superannuation comparison can be time consuming. But what if finding the right fund could feel less like a puzzle? This guide gives you a simple roadmap to compare super funds and make a confident choice.
Why comparing super funds matters
Choosing a super fund is one of the most important financial decisions you'll ever make. Like a long haul flight, a small detour at the start can land you somewhere completely different at the end. Here's what to look for when doing a comparison to help you find the top super funds in Australia:
- Strong investment performance: Compounding is your friend – it creates a snowball effect, where your money starts making money, creating a real difference over time.
- Your fund should fit your lifestyle: A fund’s investment options and services should be a good fit for your lifestyle and your job.
- Navigating life changes: What was right for you once may not suit your needs anymore. A regular check of your insurance ensures your cover still matches your life and goals.
Your superannuation comparison checklist
Making decisions about your super shouldn't feel hard. This checklist breaks down the five most important factors, giving you a simple, step by step guide to completing a superannuation comparison.
1. Investment performance
When it comes to performance, the most important thing is to look at the long term returns over 10+ years, not just the last quarter. Always compare super funds’ investment options "like with like" by looking at ones with a similar investment strategy, like a Balanced option against another Balanced option. This gives you a better picture of a fund's performance after fees and taxes.
2. Fees and costs
When you look at fees, you'll generally find two types: admin fees for running your account and investment fees for managing your money. The real value of a fund lies in finding the right balance between the fees you pay and the services you receive. So, it's not just about finding the lowest fees, but making sure you get the support and features you need.
3. Super Insurance
Think of insurance as a safety net included in your super, often offering cover like Death and Total and Permanent Disablement. When comparing, don't just look at the premium cost. A proper comparison should also consider the level of cover and whether the insurance suits your lifestyle and job.
4. Investment options
Every fund gives you a choice of investment options, like Balanced, Conservative or High Growth, each with a different level of risk. The key is to match your choice to the level of risk you feel comfortable with. How comfortable you are with market ups and downs, and how long you have until you need to start drawing down on your super. It's about finding the right balance for your money and your peace of mind.
5. Member services
Don't overlook a fund's member services, as these can provide real value. Compare the support each fund offers, from educational resources and webinars to face to face chats and financial advice about your super. A great fund is more than just a good investment. It's a partner that gives you the tools and access to advice you need to feel confident about your finances.
How to use the ATO YourSuper tool
The ATO YourSuper comparison tool is a free online tool that helps you compare super funds. It focuses on MySuper products, which are the default option for most Australians. BUSSQ offers a MySuper product, the Balanced Growth option, so you that can easily use the tool to see how our fees and long term investment returns stack up against other funds. Here’s a quick guide on how to use it.
- Access the tool: You can log in to myGov to see a personalised version with your existing funds, or use the public version on the ATO's website.
- Filter your search: Use the filters to adjust the super balance and your age to get a more relevant list of funds.
- Shortlist your options: Select up to four funds you want to compare, then click "Compare" to see a detailed side by side view.
- Review the data: The comparison will show you a fund’s net returns over multiple years, total annual fees, and its APRA performance rating.
5 tips when comparing super funds
Beyond the numbers, here are five tips to help you make an informed decision about your super.
- Read the Product Disclosure Statement (PDS): Make this your go to source for a fund's investment options, fees, benefits, risks, and insurance. It's essential reading before you commit.
- Superannuation performance comparison: Don't focus on short term market trends. A fund's performance is best shown over 10+ years.
- Use external rating sites wisely: Sites like Canstar and SuperRatings are helpful guides for creating a shortlist, but may not cover all options. Always verify details in the PDS.
- Consolidate to save on fees: If you have multiple super accounts, you're probably paying multiple sets of fees. Consolidating is easy through myGov, but before you consolidate, always check any insurance and other benefits you may be giving up by consolidating your super funds. You don’t want to lose important cover.
- Don’t be afraid to ask for help: For personalised advice on your super, speaking to a Financial Planner can be a helpful step.
Why BUSSQ Super might be the right choice for you
At BUSSQ, we believe your super should work just as hard for you. As a fund run only for the benefit of our members, we offer a partnership that goes beyond good returns. Here’s how we help you build your future with confidence:
- Long term performance: We aim to deliver consistent, strong, long term returns, so you can feel confident your money is working hard.
- No out of pocket costs for financial advice. We offer members access to our in house Financial Planners, who provide personal advice* that online tools can't.
- Transparent fees: We’re committed to keeping our fees clear and competitive, ensuring more of your hard earned money stays in your account.
- Support for your industry: From insurance to educational resources, our services are built to suit the needs of workers in the building and construction industries.
The Takeaway: making your choice with confidence
The superannuation comparison process can seem complex, but having a clear plan and the right resources makes all the difference. Now you've got a solid roadmap, why not put it into action?
Use the ATO tool to get your research started, and when you're ready for a complete, personal review, we're here to help. As a BUSSQ member, you'll have access to our team of in house Financial Planners at no out of pocket cost. Get in touch with us today to find out how easy it is to join and get the expert, no cost advice you need.
Learn more about our industry super fund for tradies and builders in construction - anyone can join.
