What should I look for when choosing a super fund?

Your first step should be to look for a fund that offers the services you need. While fees are important, remember that you generally get what you pay for. Funds charging lower fees may also be ‘no-frills’ solutions.

Some questions to ask include:

• Does the fund offer a broad choice of investment options which will suit your needs both now and as your circumstances change?
• Does the fund offer insurance in the event of death or disability?
• Do you automatically qualify for insurance up to certain limits without having to complete medical tests?
• Does the fund offer a range of estate planning features – such as binding nominations, anti-detriment payments and pensions – that could make a huge difference to your family’s lifestyle if you pass away? (See Top 10 tips)
• Does the fund provide educational tools, including calculators and guides to explain clever ways to increase your wealth?
• What sort of investments should I choose?

Once you’ve chosen a fund, the next step is to select a suitable investment option. But don’t base your decision on past performance – particularly over the short term. Past performance rarely provides a reliable guide to future returns. Instead, your investment choice should reflect your goals, your time horizon and your comfort with market fluctuations.

If you don’t make an investment choice, the fund trustee will put your funds in the default investment option, which is usually around 70% to 85% in growth assets.