How to choose a super fund
Updated on 26 November 2024 | 6 minute read
If you want to retire in comfort, you're not alone. Here's what to compare when choosing the super fund that's best for you.
Which super fund is best?
Figuring out how to choose a super fund can be tricky as there's no one-size-fits-all option. What works for your friend might not be the best choice for you, so take some time to do your research. The best super fund for you should offer the features and benefits you need, while keeping fees and costs as low as possible.
Your super balance will most likely play a big role in what kind of lifestyle you have in retirement. Most Australians need to rely on some super savings to help them retire comfortably regardless of whether they're entitled to a government age pension.
Note: Remember to compare super funds based on your financial goals before making any big decisions.
What is super?
Learn the basics of super and you’re on your way to a better retirement. In this short video we give you a quick look at how superannuation works.
What should I look for in a super fund?
You might be tempted to just look at the fund with the best performance. But there are a few other factors you might want to consider when choosing a super fund.
Long-term investment performance
Depending on your age, super is most likely a long-term investment. So it’s important to look for good performance over at least 5 to 10 years. Some super funds will focus on exceptional performance for the last year, but you want to be with a fund that will perform best for you in the long run. Keep in mind that past performance isn’t necessarily indicative of future performance, so it shouldn’t be the only thing you look at.
Competitive fees and costs
When you're choosing a super fund, it's also important to think about the fees and costs a super fund charges its members. While a small percentage difference in costs might not seem like much in the short term, it could cost you thousands of dollars more over your working life.
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Investment options
Your super fund invests your money for you to help it grow.
Most super funds will let you choose from a range of investment options. It’s worth taking a close look at the investment options as it can have a big impact on your retirement savings. Over time, the same amount of money invested in different investment options can produce different results.
Think about the risk you’re willing to take, the return you’re after and how long your money will be invested when picking your investment options.
Insurance cover
Having insurance cover within your super could give you and your loved ones peace of mind if something happened to you. But not all funds offer the same types of cover.
Types of insurance that may be available from your super fund:
Death cover that pays a lump-sum benefit to your nominated beneficiaries after your death. They can also choose to take it as an income stream.
Total and Permanent Disability (TPD) cover that pays you a lump sum benefit if you become totally and permanently disabled. You can also choose to take it as an income stream. The definition of total and permanent disability varies between funds, but essentially it means that your disability will prevent you from ever working again.
Income Protection cover that replaces part of your income for a period of time should you be unable to work due to illness or injury.
Under 18?
If you're under 18 and working, you may still be entitled to super. There are just a few extra things to consider when choosing a super fund.
Tools and advice
Check that the super fund you’re looking at offers a range of member services. Can you access your account online, including via an app? Do they offer financial advice to members as part of their membership? Does it have tools and calculators that can help you make the most of your super?
As a member of ART, you’ll have access to all these services and more.
Type of fund
Industry funds and retail funds tend to be the most popular type of super funds in Australia. As one of Australia’s largest super funds, Australian Retirement Trust (ART) works for our 2.4 million members, not shareholders. This means we can give back profits to members as lower fees and better services. We look after workers and business owners from all industries.
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