New risk-based ranking set to change views on super

30th of June 2015 | by Laine Gordon

Many Australians don’t understand how their life stage or appetite for risk can impact the type of superannuation fund they need.

Research shows more than half of the working-age population (8 million people) is not actively selecting their super fund and their contributions are being paid into ‘default funds’, which may not be the best option for them.

RateCity has taken matters into its own hands and is today launching a new way of looking at super comparison in an effort to get people to sit up and take notice of what is arguably the most important savings account they will own.

The RateCity Rate of Return methodology for super and pension funds gives a risk-based ranking for a diversity of investment options in what is a first for the market. It allows people to select the investment options to suit their preferences and risk profile and then compare funds in a like-for-like way.

Jeremy Willink, financial commentator at RateCity.com.au, said, “A lot of Australians don’t realise that there are investment options within their super fund that they can be actively involved in, and that by making a few adjustments it can drastically impact their retirement fund”.

“Balanced funds, or default funds as they are often called, aren’t necessarily bad but they aren’t for everyone,” he said

“Choosing different investment options that match your risk profile and future income needs allows consumers to have more control and say over their retirement savings.”

The launch of Rate of Return methodology complements the already comprehensive comparison of superannuation funds available at RateCity.

For further information about the methodology or for unique insights please get in touch at any time.

This is an information service. By browsing on the website and/or using our search tools, you are asking RateCity to provide you with information about products from multiple financial institutions. We will try to show you a range of products in response to your request for information. The search results do not include all providers and may not compare all features relevant to you, for further details refer to our FSCG. The rating shown is only one factor to take into account when considering these products. We are not a credit provider, and in giving you product information we are not making any suggestion or recommendation to you about a particular credit product. If you decide to apply for a product, you will deal directly with a financial institution, and not with RateCity. Rates and product information should be confirmed with the relevant financial institution, and you should review the PDS before you decide to purchase. See our terms of use for further details. This advice is general and has not taken into account your objectives, financial situation or needs. Consider whether this advice is right for you.