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How to compare super products and funds

Section: 3.5

Comparing superannuation product funds is not difficult if a member knows how and what they are looking for when comparing fees, investment options, performance and insurance.

The challenge for anyone choosing a MySuper product or super fund, through their employer, employee or an individual looking for a personal superannuation product, is to find one that suits them.

Not all products and funds are alike as they are designed to serve the needs of different types of members. For example, some are aimed at people who want simple low cost super, some are aimed at people who want lots of choice and some are aimed at people who want direct access to their own investments.

To sort out which superannuation funds and products will suit a potential member the challenge is to figure out what that they offer, what features are desirable, which are likely to deliver the best investment outcomes for the most reasonable fees, and which have the best insurance deal for a member.

Superannuation account is really not that different to any other savings account except that a superannuation account is one a member will have their entire whole working life and probably throughout their retirement, i.e. a young person joining the workforce this year could be a member of that product or fund for up to 70 years.

What makes a superannuation account different is its purpose; members are not saving for day to day expenses or even a car or a holiday, but for their retirement. Its primary purpose is building up a large enough account balance to fund their retirement income.

Super funds and products achieve this by making smart investment decisions, either themselves or in consultation with their own advises, and by utlising the services of quality investment managers who then invest the fund's money on behalf of the members to earn good rates of return. The icing on the cake is that along the way they may also give great online account access good deals on insurance, access to other investment products and banking services, financial advice and even shopping discounts.

This technical resource is intended for the use of financial advisers only. It is current as at the date of publication but may be subject to change. This publication has been prepared without taking into account a potential investor's objectives, financial situation, needs or objectives. Before making a recommendation based on this material, you should consider its appropriateness based on the client's objectives, financial situation and needs. Rainmaker Group is not a registered tax agent under the Tax Agent Services Act 2009. Your client should refer to a registered tax agent before relying on information published herein that may impact their tax obligations, liabilities or entitlements.

Last modified: Friday, November 13, 2020