Need Help with Australian Super?
In Australia, retirement income is funded through a mix of personal savings, a government pension and superannuation (super). The Government has a reduced tax system that encourages Australians to at least partly fund their retirement incomes and so reduce the future tax burden on working taxpayers.
Super is made up of employer contributions, your own personal contributions and sometimes additional Government contributions. Money deposited into your super fund is invested by the fund’s trustee, who aims to grow your account balance while you are still working.
There are TWO main types of superannuation in Australia:
- APRA Regulated Pooled Superannuation Funds; including- Industry Super; Retail Super and Government Super funds;
- Self-Managed Superannuation Funds (SMSF’s) – Click to read SMSF webpage.
How to compare super funds
There are a few key things to consider when comparing super funds.
The complexity of the superannuation industry often undermines people’s confidence in Australia’s most efficient retirement savings strategies.
Some industry super funds have consistently outperformed retail super funds in terms of returns. The main advantage though of Industry Super Funds over Retail Superannuation is definitely the lower fees generally charged by Industry Funds.
One reason is that Industry funds benefit from about $10 billion in guaranteed default contributions that flow through modern awards each year, along with enterprise agreements that earn them an “illiquidity premium” that Retail funds cannot access.
SFR believes that Industry Super Funds and SMSF’s are currently the two REAL options that most people.
What’s more, with the current Royal Commission into Misconduct in the Banking, Superannuation and Finance Industry, Retail Super Funds are facing significant challenges in proving they position as a viable Superannuation alternative!
The Need for Superannuation Advice is now greater than ever.
Talk to SFR Advisory to get the right advice on what to do with all aspects your superannuation.