Ever heard about consolidating your super? Curious as to what affect it can have on your retirement?
Choosing the right superannuation product, amongst other things, is an important decision to make. Unfortunately, it’s not as simple as choosing the fund with the highest performance and then moving everything across to that fund. There’s much to consider to ensure you get the most out of your superannuation account. We have provided some areas that we look for and discuss with our clients.
Choosing a super fund that works for you
There are a number of different super fund products available on the market which is why it’s so important to make an informed decision on which one will suit you best. As mentioned , the account with the biggest balance isn’t always the one that is going to provide you with the greatest investment returns, lowest risk or value across the board. And, it may not be the one best suited to your needs.
When you’re looking at a super fund, these are some things you should consider:
- Fees:What type of fees does the account have, as these can vary across funds? Common fees you’ll incur include administration fees, investment fees and switching or exit fees – so check before you switch!
- Insurance: What insurance options does the fund offer? Death cover, disability insurance and income protection are key benefits you want to ensure are included. Importantly though check the quality of the insurance, is it even worth having?
- Beneficiaries: Does the fund provide adequate beneficiary options? Will it ensure your super is being allocated to the right people according to your wishes?
- Flexible investment options: Are there any limitations on how your money is invested or do you have the control to choose? Many of our preferred superannuation products, for example, have customised options and individual investment options available that allows our clients to ensure they have access to and the ability to diversify their portfolio in line with their chosen level of risk tolerance.
Assessing your current super fund
Before you choose to switch superannuation product providers, its best to look at what you currently have and compare that to other product options available. Start by investigating and determining what type of account it is. For example, a defined benefit fund differs from an accumulation account (if these are new terms to you, email us so we can speak with you further about the differences). Different account types have varying pro’s and con’s which all need to be considered before taking action. Actions taken now may have a flow on effect later down the track – especially on your retirement.
Identifying your current fees is a vital consideration to make. Make sure you consider the following points offered by your existing provider:
- Exit fees that you may not have been aware of
- Note your funds’ performance both in the short and long term
- Any beneficiary options that may be in place
- Any insurance policies included as part of your superannuation account – this may need to be replaced if you move.
Overall, it’s essential that you find a fund that’s transparent and provides easy access to manage your account. Online Access is also an important feature in today’s society as you can check your super balance at any time.
Opening an account
We provide our clients with access to a wide range of products with varying levels of product features and benefits and on different price points. If you’re considering opening a new superannuation account to consolidate your existing super funds you can speak with one of our financial adviser’s by calling (07) 3284 7875 and making an appointment today.
(P) (07) 3284 7875 | (F) (07) 3284 4790