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.