Looking for a MySuper product or super fund you can rely on? This checklist should help you.
1. Fund Quality and Administration
- Does the fund have a Rainmaker AAA Quality Rating?
- Do you understand how the super fund(s) work and what makes them special? Test yourself by explaining how they work to a friend.
- Who runs the fund, i.e., who is behind it? Have you heard of them? What are their credentials? Do you trust they'll be around for a long time? Who do you call if something goes wrong?
- Have you "road tested" the fund? Are their annual member statements easy to understand? Do the fund information booklets contain all the information you need?
2. Investment Options and Performance
- Do you understand the fund's investment menu?
- How do the investment returns stack-up against other funds? Are the investment choices you intend on using above average, i.e., what is their record over the past three, five or even 10 years?
- What TOTAL fees will you pay each year, and what do you get for this? For example, average fund fees are now around 1.3% but the sharpest priced funds charge less than 1%. If you are paying more, what are you getting that's special?
- Does the fund offer insurance and what types, i.e., death only, death and TPD, income protection? What does it cost? Do you trust the fund will look after you if you need to claim?
- If you are thinking of changing MySuper products or funds, is the new insurance deal better than the deal you already have and will you be automatically accepted for cover in the new fund?
5. Additional Benefits and Services
- Does the fund have a reasonable range of extra features that you will actually use? E.g., does it have online account access, web chat does it have an app, is the website good enough, does it offer deals on health insurance?
Remember that if you have super in more than one MySuper product or super fund maybe you should also think about consolidating them into your favourite fund. Every smart super fund will help you do this.
If you want extra advice and you want to consult a professional financial adviser near you, please visit our sister service SelectAdviser: www.selectadviser.com.au