Choosing a super fund is among the most crucial financial decisions you'll have to make as an adult.
Your choice could mean thousands of dollars difference in your retirement money, so choosing the right one is of utmost importance.
It doesn't matter if you're an employee getting Superannuation Guarantee payments or self-employed. You can choose the fund that you want unless you belong to a sector covered by industrial agreements or you are a member of certain benefit funds.
No matter your circumstances, here are the types of funds you can choose from as shared by your trusted financial adviser in Queensland:
These are funds set up to look after the super interests of employees of a particular firm or organisation. In some circumstances, a corporate super fund may also take on the interests of former employees or contractors who are not eligible to join an industry super fund or the public service.
Many people fail to realise that super industry funds actually represent the bulk of super in this country. In total, well over four million Australians can only choose from an industry super fund to look after their super - and that includes the vast majority of blue-collar workers and the self-employed.
The main advantage to industry funds is that the default for many industries is set at the industry level, so most people never need to consider actively switching from their original fund.
Public Sector Funds
These are super funds that represent full-time workers in the public sector or former federal government employees, state government, public schools, and hospitals.
As a general rule, public sector funds offer the same investment choices as retail funds. However, there is no choice about whether you want your money invested in international shares, property, or cash.
These are funds designed to meet the needs of the general population. They can be open to the public or restricted to employees of specific companies or organisations.
Retail funds are designed to compete with each other for your money and offer a wide range of investment options and fees. As a result, you have more choice about where and how your money is invested.
Public Sector Funds
This is a super fund that covers the interests of public servants in federal, state, or territory governments. They also cover public school employees, public hospital employees, and former government employees. These funds offer a limited range of investment options and fees.
The most well-known retail super funds are banks, such as NAB and CBA. These are funds operated by a bank but separate from the bank's regular banking business. The Australian Prudential Regulation Authority (APRA) regulates these funds.
Self-Managed Superannuation Funds
Self-managed funds allow you to manage your money by yourself. You are responsible for all investment decisions, fees, taxes, and compliance.
The main advantage of having a self-managed fund is choosing the investment option that best suits your needs. A self-managed super fund is also better if you have more than one super fund. With just one self-managed fund, you can contribute to multiple super funds and invest the money in a way that suits your needs.
Choosing a super fund is among the most crucial financial decision you'll have to make as an adult. Understanding superannuation and the different types of super funds significantly impact your retirement savings.
Your choice could mean thousands of dollars difference in your retirement money, so choosing the right one is of utmost importance. If you are unsure about the right type of fund for you, a reliable financial adviser in Queensland can help you.
Swell Financial Planning can provide you with the expert services of an experienced financial adviser in Queensland. Contact us today to know more about our services!