How to compare super funds in 7 easy steps

Superannuation is like any long-distance journey; you want to make sure you know where you are headed and how to reach it. That includes finding a vehicle that’s fit for purpose. Otherwise, you could end up short of funds and unable to enjoy your destination – retirement.

Whether you are choosing your first super fund, consolidating two or more funds into one, or wanting to switch to something better, it pays to think about what you need in a fund before comparing what’s on offer.

Most people these days can choose their fund, unless you happen to be an employee in a defined benefit fund or covered by an older industrial agreement. If you don’t choose a fund, your employer will pay your Super Guarantee (SG) contributions into your ‘stapled’ fund, that is, one you chose in the past or the default fund one of your previous employers used for you. If you don’t have a stapled fund and don’t choose a fund, your employer will pay contributions to their current default fund. You may be lucky and end up in a high-performing fund, but unless you verify this is the case, what you don’t know could be very costly.

The following steps are designed to guide you through the process of comparing and choosing a fund that will get you where you want to go.

1. Know what you want

Before you start comparing funds, it’s important to think about what you want. Otherwise, you could end up paying for expensive extras you don’t need. Or you could sign up for a product that lacks the features you do need.