I’m 21 and I want to open a superannuation fund that will give me the best benefits and security, rather than letting each of my employers start new super funds for me. What should I be looking for – no fees or more interest? Which company has the best superannuation scheme? Cheers, The Industrious Mouse
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Super schemes can vary widely in terms of a number of variables it’s worth taking into consideration, although at 21 you’ve got a relatively long career path ahead of you, which means you’ve got potentially more time to accrue Super and, when and if it happens, take any interest or revenue hits along the way.
There’s no absolute one-size-fits-all “best” scheme, and depending on your actual work circumstances you may end up in a career path where an industrial award points to a specific scheme you have to partake in. There’s also no shortage of sites that will offer comparisons of the fee structures of differing schemes out there that you could plug a few figures into — you could check Canstar, Morningstar, Finder or RateCity for example.
If you’ve got the choice, there’s really no reason not to shop around. It’s also worth checking for other benefits that a given fund may or may not offer, especially as they relate to insurance products. ASIC’s Moneysmart portal has some great general advice when it comes to properly comparing superannuation products which is well worth your time to read.
In a broader context without specifically naming a “best” fund, I’d strongly argue that lower fees were a generally better bet than a predicted rate of return, because for most accumulation style funds, it’s possible for investments to turn sour and cost you more over the longer term. Again, that’s a function of how risk averse you are. At 21, as noted, you’ve got a bit of time to play with risk in terms of your longer-scale superannuation profile.
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