AMP has shared with us this video that will talk you through choosing your superannuation. You can watch the video here or read the transcription below.
My name is Paul. I work at AMP. I want to talk about how you choose your super. If you’re working, your employer normally has to make a regular super contribution for you. Of the place your super goes, it’s usually up to you. It’s a choice a lot of people make when they change jobs. The big option for people are the corporate fund of their employer, a retail fund, an industry fund, or self-managed super fund.
People who compare these types of funds often only compare the investment returns but you should probably look a bit further than that. Check three other things. First, look past the returns because the past performance doesn’t mean that’s how it’s going to perform in the future. Instead, look at those fees and charges because they will continue to impact your account and that will affect the end result of your super savings.
Second, check if your super account will give you the investment options you want. The more investment options, the more you’re able to tailor your investments all with the same super account. Third, look for the other features and benefits that could matter to you, especially insurance.
Often, the corporate super fund offered by your employer will have important benefits which you’ll qualify for automatically and one of those is normally insurance. Their plan may also entitle you to apply for additional insurance without going through the normal application process. In some cases, you may be automatically accepted even for existing illnesses or injuries.
Insurance within a corporate super fund may also be cheaper than in a retail fund as your employer may have negotiated a special rate. If you’re changing jobs, take a good look at what your new employer offers through their corporate super fund. If you can stay in your existing super fund and you find it offers you more features you care about, you can choose that. Just tell your new employer you want your future superannuation contributions to go to your existing super fund.
One final thing to think about when changing super is consolidation. It’s worth thinking about because with every fund you maintain, you’re paying an extra set of fees. If you do decide to move it to one fund, again make sure you’re not going to lose any of the benefits you care about like insurance. You should check whether there are any cost of moving your super too.
Obviously, you’ll need to consider your personal circumstances before you make your choices, but if you secure the insurance features you want, you could be better looked after. If your super has lower fees, your money could end up going a lot further when you retire. Either way, if you care about the way you retire, the features and fees within your super are definitely worth a good look.