Every Australian who works in a part-time, full-time or casual jobs will pay into a national superannuation fund. The money that goes into your superannuation fund will go towards your retirement. It is like a little nest egg that gets beefed up with each payslip and is accessed when you retire.
What is a national superannuation fund?
A national superannuation fund, also known as an Australian superannuation fund or a personal superannuation fund, is one of the most effective ways to save for your retirement. A little bit of your money will be taken from your pay cheque and will be pooled with other people’s superannuation money and invested into different investments. Your employer will make superannuation contributions on your behalf but you can also add a little extra or top up your super fund whenever you want. You can’t access this money until you retire though, so choosing the best superannuation fund is important.
What are the different types of national superannuation funds?
Each superannuation fund is different so you should pick the fund that best suits your lifestyle, career and goals. There are many superannuation funds for you to choose from. Self-managed super funds give you more control over your superannuation. It means you are the manager of your super fund, which means you are in control of your retirement and your future. There is a lot of work involved in running a self-managed super fund.
Retail superannuation funds are usually run by banks or investment companies and they often offer a variety of investment options. Anyone can join them but they often run at medium to high costs with the banks or companies who run them looking to retain a profit.
Industry superannuation funds, which are sometimes restricted to workers of a particular industry, are not-for-profit entities. They put the profits back into the superannuation fund so the members receive all the benefits.
These are some but not all of the superannuation funds you can choose from.
How do I choose the right national superannuation fund for me?
Choosing the right superannuation fund is important because it helps set you up for retirement. Think of your super as a friend that follow you through life. The more investment you make in the friendship the better it pays off in the long term.
Most employees can choose their superannuation fund, however some people can’t because of an industrial agreement or a previous superannuation arrangement. Talk to your employer about your options.
If you can choose your fund, you’ll be given a 'standard choice form' when you begin employment. This form will let you pick your own superannuation fund. You can choose your own or go with the one your employer has set up.
Make sure you provide your tax file number when you join a superannuation fund so that you are taxed at a special lower rate.
What should I look for when comparing national superannuation funds?
There are some key things to look for when comparing superannuation funds.
Look at the fees involved, understand where your money is being invested, analyse the fund’s performance, understand what insurance is on offer for your superannuation and check out the services your fund has on offer.