Ensuring financially stable retirement days starts with choosing a good pension fund. When it comes to super funds, Australians have more options to choose from. If you are faced with the challenge of choosing a super fund, before you make your decision, take a look at our selected list of the best Australian super funds. We have made a simple overview of the most popular funds in Australia.
Self-Managed Super Fund
The self-managed super fund is best known as the DIY fund intended for those who want to have full-control over their savings for retirement. Being in control with the savings means taking full responsibility for the managing of the fund. You can manage an SMSF by employing professional adviser to help you make the right decisions, or if you have extensive skills in finances and law, you can manage your fund by yourself. However, before you decide whether SMSF is the right choice for you, you need to understand the strict rules by the Australian Taxation Office. In brief, here are the most important things that you need to know before you set up such a fund.
- You need a larger sum of money to cover the expenses for setting up and running the fund;
- You should dedicate extra time and attention in order to do a good research and good investment choices after that;
- Good financial skills and experience are more than important for making good investment choices.
- You will need to separate special budget for covering ongoing expenses for financial advisers, taxes, audits and legal matters;
- Setting and following an investment strategy is one of the key factors for fruitful retirement days;
MySuper
MySuper is a relatively new type of account that is offered by most of the best Australian super funds. You can choose an account of this fund, and if you don’t do it, your employer has the right to do it for you. The main advantages of this super super fund include:
- Lower setting fees and less demanding regulations in respect of the type of fees that you need to pay for running the fund.
- No need to pay for services you don’t plan to use;
- You can choose between singe investment options or life stage options.
- This account is offered by a significant number of corporate, retail and industry funds.
Retail Funds
The retail super funds are in general run by companies and institutions such as banks. However, there are no limitations in respect of the categories of people that can set up and run a retail fund, which means that anyone can join this super fund. The main reasons to choose this fund include:
- Wide span of investment options;
- A retail fund is an accumulation fund;
- It is recommended by many professional advisers as the best option of anyone who needs a super fund, no matter if he\she is willing to pay mid or high cost.