Which Is The Best Company for Superannuation?

Hi,

I’m new to the work force and just got a job locally and I was from overseas before. Friends said that I have to look for a superannuation company for my company to deposit funds into (for retirement etc).

Question is : which company is good for superannuation, that is, less fees, hassle etc. I’ll be in the nursing and aged care industry. Do I have to go to a company that’s for that certain industry or can I go to any super company?

Need help on this. Thanks in advance for your kind help.

Regards,
S.

Comments

  •  

    how long is a piece of string?

  •  

    I can't comment on your own personal situation but I find Netwealth to be fantastic. Allows you to invest in a range of funds or direct stocks for a very reasonable amount. It's only really worthwhile above $20k super though as the fee structure is part fixed and part %.

    •  

      Guess mine is less than $20k and I’ve yet to deposit my first dollar. Lol.

      •  

        In that case there are a few other high performing ones with lower fees structures like HostPlus and Vision Super. Both of these have performed relatively well and don't have much fixed fees so they won't eat into the little super you will have. Of course past performance can't predict future performance but at least the fees won't eat into your base.

        •  

          Oh ok. Thanks for the information machej. Will look into those 2 and read up more about it. At least I can choose either one of these 2 rather than to read up all or most of the company’s profile that’s out there. Appreciate it. Thanks :)

        •  

          Interested to know which funds you've been using if you're willing to share.

    •  

      I just closed my Netwealth account yesterday. Fees were too high, only pay about $60 per year with First State Super now.

      •  

        There's more to super than just the fees. I have had 25%+ PA return on many funds and pay like $170, well worth it for me.

  • +3 votes

    Industry super funds are almost always better for their members than bank funds.

  • +2 votes

    Don't forget to untick the box for life insurance if you don't want it!

  •  

    secret

  • +2 votes

    You can go with any fund that will take you but as Elwes says industry funds are usually better. HESTA is an industry fund for your sector.

    •  

      Thanks green possum. I’ve heard about them but some people say that their fees and all are high. I am from Singapore and we don’t have these. We only have central provident fund. Just one place to manage our funds till I come here and found out there’s so many companies that is offering it. I’m lost and a lot warned me about fees and hidden charges etc. honestly I don’t know what to looking out for. The jargons, the percentage, the returns etc are all Greek to me. Lol. Guess have to just pick one and hope I got the right pick. Lol

      •  

        Welcome to capitalism choice. The information on fees and charges for funds can be found on the Internet. Funds are required to publish PDS (Product Disclosure Statement) for each of their products. Also on the Internet are various reviews, comparisons and calculators. Unfortunately you have to do your due diligence for the overheads. Some fees are a percentage of the balance and some are fixed per year. So you'll have to plug in the numbers for your situation, not only for now but for the foreseeable future to get the figures.

        But later if you think you have made a mistake, you can switch funds, you're not tied to one for life.

        •  

          Yeah. That’s the problem. Have to do my maths and read reviews. There’s no one who can tell this or that funds is good or cheap etc. oh well, back to the calculators then. Thanks free possum for your India. Appreciate it :)

  •  

    Yeah. That’s the problem. Have to do my maths and read reviews. There’s no one who can tell this or that funds is good or cheap etc. oh well, back to the calculators then. Thanks free possum for your India. Appreciate it :)

    •  

      The thing is everybody's situation is different. A person starting out would be more sensitive to charges than someone with a large balance. Some people have more appetite for risk than others and funds offer a variety of products some with higher return but also higher risk. Some people want to go for certain products which are offered. Some may like the benefits offered by a fund. And so on and so forth.

      •  

        That’s the thing. Too many things to consider. Like if I need the insurance or do I want higher risk etc etc. I feel like I’m buying shares and it’s like a gamble than it’s a plan for the future. Not so straightforward like a central provident fund company that they have in Singapore and you don’t have to worry if our money makes money or not

        •  

          Oh yes, your CPF (probably a statutory authority) has to make money to cover inflation. You can be sure that their members, even if they have no choice, will be upset if their gains did not keep up or exceed the rate of inflation. However funds employ professionals so in essence you are placing your trust in them to invest sensibly. It's just that some funds have better judgement than others.

  •  

    hostplus indexed balanced

    remove insurance

  •  

    I recommend CBUS, an industry fund. They have a history of strong performance over a long term with low fees.

  • +1 vote

    Try Australian Super Fund. Excellent back-end (investment and returns) but front-end (sales and customer service) could do with improvement. Nonetheless constant higher than average returns and great Website control of your Super. 48 hours it takes to change your investment as many times as you feel the need, for no charge.

  • +2 votes

    As others have said, choose an industry fund instead of a retail fund. They (typically) have lower fees and higher returns. I would recommend Hostplus or Australian Super, you can google “top superannuation funds” to get a rough idea of which funds to do further research on.
    I am with Hostplus, it is a hospitality industry super fund. I joined when I was in hospitality but I no longer am and it hasn’t been an issue. I would double check the requirements though on the one you decide to go with. There may be extra benefits to being in one for your industry, I am not sure.
    Opt out of the insurances if you don’t need them or already have them elsewhere, I think you are always signed up with them so the funds can get some extra money. Keep your money and opt out if you decide you don’t want them.

    Referring to your confusion at the Aus super system, I would recommend two things. One is, I know my fund has financial planners. You can register for them to call you and discuss your super. The first call is free. I am sure all super companies have a help line, call them up and ask all of your questions. Don’t worry about sounding silly, they must get silly questions all day. Utilise the help they are there to provide.
    Second, look up the website “money smart”. It is run by ASIC (part of the Aus government) and it tries to help people understand their money and the Aus system. Look up their articles on superannuation so you feel like you understand the process a little more. They probably have articles on how to choose the best fund for you and your situation. Good luck :)

  • +1 vote

    I've just changed to Australian Super after researching them all. Other top candidates were Hostplus and SunSuper.

    •  

      I hope if you’re not in that industry they are willing to take you in. Any ideas about EISS? They constantly come up as recommended on compare sites.

  •  

    The barefoot investor recommended Hostplus index balanced fund. Cheap fees and reasonable return.

  •  

    what you have to check on with any super company is what percentage of their managed funds have been invested in what I call Bail-In Bank Bonds they are high yielding Bank Bonds introduced after the Brisbane G20 ordered by the BIS and approved by Abbott government with Shortens support. The restrictions imposed by Government that they could only be sold to Super Funds and Mum & Dad investors. I am sure the Superfund managers did not read the fine print or understand Bankers language and the Mum & Dad investors would not have a clue. The BIS ordered the Australian Banks make the interest high to sucker the buyers in. It has worked the Funds have invested heavily in them. But there are clauses allowing the Banks to steal the money if their bottom line becomes shakey making the Bonds value $0. and this will happen that's why they were created and the banks are not kind-hearted paying 7.5%+Interest. The fund that I was in had invested 25% of their Gross billions of Dollars members funds. If that was not bad enough they were gambling in Derivatives and the amount on the member's statement is just the amount purchased and not the Risk amount which tells the truth. (the Australian Banks have a gambling risk of $38+ Trillion and this is why the BIS ordered the Bail-In Bonds plus Turnbull has just sneaked through legislation that allows the Banks to steal depositors money. Last week when passed by the Senate there was only 12 Senators present and just invited Liberal & Labor senators and it was passed unopposed and most probably holds a record for the speed it passed through and the Senate committee's report into the bill was not considered and none of the Committee members where present)

  •  

    I used to use Australian Super due to the very good returns and low fees. I'm now with a new company who have a deal with another superfund. As part of the deal I get extra employer funded super contributions (2%) on top of the 9.5% as long as I make extra contributions (pre-tax), so I'm stuck with this superfund. If it wasn't for the extra contribution I would've stayed with Australian Super.

  •  

    There’s a good a good chance your company will use HESTA and they are a fantastic option for health workers or anyone for that matter. They are industry super fund, fees are low and they are doing great things with their money in terms of sustainability and climate change etc. I’m a happy customer.

    •  

      I’ve checked around and their fees.

      HESTA
      Administration fee* $1.25 per week, plus 0.08% p.a. for Core Pool and 0.10% for other options (subject to a fee cap)*

      Australian Super :
      Withdrawal fee $35
      Management cost - member fee ($ per week/ annum) $1.50 per week (Pension Division also has an asset based fee of 0.11%pa of account balance capped at $750 p.a.)
      Management cost - investment fee (% p.a.) Range from 0.10% to 0.66% pa for 2016/17 (0.57% for the Balanced option in 2016/17). Management fees can be incurred for Exchange Traded Funds (ETFs)

      First State Super
      Withdrawal fee $36.00
      Management Cost - member fee $52 per year plus 0.15% pa of account balance
      Management Cost - investment fee (% p.a.) 0.07% to 1.03%

      EISS Super
      Management Cost - ongoing fee Nil
      Management Cost - investment fee Range from 0.35% - 0.67% depending on the member's Investment option
      Management Cost - member fee

      All these are Greek to me. Guess I have to pick one from these or wait and see which my employer is with.

      • +1 vote

        You can narrow down the fees by deciding which investment option you want. For someone starting out who is likely to be working for many years more you probably want a Growth option.

  •  

    Found this one this website : http://www.superratings.com.au/superratings-top-10/

    Don’t know if this is legit or can depend on it.

    TOP 10 RETURNS
    WHICH FUNDS HAVE HAD THE BEST RETURNS?

    By comparing fund with fund, we are able to see the funds that perform best in the key area of investment returns.

    As at 30 November 2017

    30/11/2017

    Balanced (60-76)

    3 year
    Rank Fund Investment Option Return Return Period
    1 HOSTPLUS - Balanced 10.25% 3 year
    2 MTAA Super - My AutoSuper 9.82% 3 year
    3 AustralianSuper - Balanced 9.80% 3 year
    4 Cbus - Growth (Cbus MySuper) 9.71% 3 year
    5 Catholic Super - Balanced (MySuper) 9.64% 3 year
    6 Sunsuper for Life - Balanced 9.36% 3 year
    7 CareSuper - Balanced 9.31% 3 year
    8 UniSuper Accum (1) - Balanced 9.24% 3 year
    9 AustSafe Super - MySuper (Balanced) 9.13% 3 year
    10 Intrust Core Super - MySuper 9.07% 3 year

    TOP 10 FEES
    WHICH FUNDS HAVE THE LOWEST FEES … YOU MIGHT BE SURPRISED.

    The table below shows the lowest average fees payable on a $50,000 account balance for public offer funds.

    As at 30 September 2017

    Rank Fund Name Fees based on 50K Balance
    1 Vision Personal $178
    2 Bendigo SmartStart Super $313
    3 ANZ Smart Choice Super $330
    4 brightday Complete Super $350
    5 Grow Wrap Super $370
    6 Club Plus Super $404
    7 Energy Industries Superannuation Scheme Super $410
    8 MyNorth Super $416
    9 IOOF Pursuit - Focus Personal Super $420
    10 Virgin Money Super $425

    TOP 10 INSURANCE
    WHICH FUNDS CURRENTLY OFFER THE LOWEST INSURANCE PREMIUMS, BASED ON AGE AND GENDER? TAKE A LOOK FOR YOURSELF …

    The following Top 10 is based on public offer fund insurance.

    As at 30 September 2017
    Rank Cover Type Fund Name
    1 Death/TPD RetireSelect Super
    2 Death/TPD legalsuper
    3 Death/TPD Australian Catholic Superannuation - Employer Sponsored Plan
    4 Death/TPD Intrust Super - Core Super
    5 Death/TPD Equip - MyFuture
    6 Death/TPD EmPlus
    7 Death/TPD Virgin Money Super
    8 Death/TPD MyLife MySuper
    9 Death/TPD Suncorp Everyday Super - Personal
    10 Death/TPD Vision Personal

  •  

    If you do not know anything about superannuation then you should check http://www.releasemysuper.com.au/. This website is all about super and will provide you all the guidance related to superannuation. Best of luck with your search.

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