Experts reveal how you can boost your superannuation

When it comes to weighing up the super funds best suited to your needs, there are several areas to focus on. See expert advice.

Superannuation experts are encouraging Aussies to evaluate how they manage their super as

markets continue to shift.

Rather than “switching’” or focusing too heavily on the short-term investors are being told to adjust how they use their funds in relation to age and life events.

Most super funds give the choice of an aggressive or growth option, then a balanced option, a

conservative option and a straight cash option, depending on the risks investors are wanting to take.

When it comes to weighing up the super funds best suited to your needs, the areas to focus on include fees, insurance and how the fund has performed long-term.

Canstar group executive and financial commentator Steve Mickenbecker.

Canstar group executive and financial commentator Steve Mickenbecker said making choices

regarding superannuation can largely be driven by the stages of life investors are in.

“If you are young adult you probably don’t have a lot of financial commitments or dependants and you might want to look at high growth funds,” Mr Mickenbecker said.

The secret of successful super investing is the compound growth all asset will achieve over the long term.

Industry research continually shows that how much money you make with investing comes down largely to asset allocation – that is amount of money you had in which baskets: Shares, bonds, etc over the years.

Advisers suggest in order to optimise your chance at success, decide what sort of investor you are and stick with that for your entire career.

If you move between conservative and balanced and growth every time there is a drama you are only heading for trouble.

What’s more, each time you switch you may face both fees and an upset to the momentum of long term growth every fund needs.

Super Consumers Australia director, Xavier O’Halloran. Picture: Supplied

Advisers suggest the only time switching between funds or between menu choices inside the same fund is when you reach life milestones – you need a different ‘risk profile’ when you are 59 compared with 29.

Super Consumers Australia director Xavier O’Halloran said the most important thing to understand regarding your super fund is that it is a long-term investment, but there are certain things to look out for depending on your age.

“Make sure you know where your super is and that it is consolidated is worth doing to save

additional fees and charges. It has also never been easier to check how your super fund is

performing over time using the ATO mysuper comparison tool,” Mr O’Halloran said.

Since the government updated super rules, workers now get ‘stapled’ to the very first fund they join – unless they nominate to change funds when they change jobs they are likely end up staying with the first fund they ever chose as their fund for life.

Similarly the choice of fund option from a chosen fund’s menu list is equally important.

FIVE TIPS TO BOOST YOUR SUPER

1. Don’t switch funds often

Each time you switch you may face both fees and an upset to the momentum of long term growth every fund needs.

2. Check your fees are reasonable

See how your fund’s fees compare to others to make sure you are getting the best deal on offer.

3. Choose the right insurance

The right insurance will depend on your job and how far away you are from retiring, as you start accumulating financial commitments you might want to reconsider your insurance options.

4. Watch long-term fund performance

Don’t be distracted by short-term trends, monitor how your fund has performed over time.

5. Use online comparison tools

It has never been easier to check how your super fund is

performing over time using the ATO mysuper comparison tool.

Originally published as Experts reveal how you can boost your superannuation