What to look for in your new super fund
Starting a new job is an exciting time, full of new things to see and do. There are new processes to learn, new colleagues to befriend and, potentially, a new super fund to choose.
The basics of super
Joining the Qantas Group family, for example, means you’re eligible to join Qantas Super.
Established in 1939, generations of the Qantas family have trusted Qantas Super to help them plan for the future. We were built from the ground up to suit the unique needs of the Group’s staff, which means we understand what you need from your super fund.
As you think about where you want your super to go, there are a couple of important things to consider.
Performance
Super is your money, invested for you in a structure run by super fund trustees for the benefit of members at retirement.
The types of investments you can make through your super are generally no different to the investments you can make outside your super. For example, super funds invest in assets like shares and property, just like individuals do.
And just like you might invest in a rental property to receive a return on your investment in the form of rental income, you want your super to generate returns. When we talk about a super fund’s returns, we talk about its ‘performance’.
So, how do you evaluate performance? The main piece of advice you’ll come across is to look at a fund’s performance over the long term.
Super is an investment most of us will hold for several decades, so judging a fund based on its short-term performance, such as over the last 12 months or less, doesn’t give you a good indication of what your super could look like by the time you’re ready to retire.
Also remember that past performance is not an indicator or guarantee of future performance. ASIC’s MoneySmart notes that “the top-performing funds of today tend to fall back to the average over time”.
As well as measuring a fund’s overall performance, it’s also important to look at the performance of a fund’s individual investment options.
Insurance
As a result of legislation introduced in 2005, many super funds offer members limited cover for total and permanent disablement, income protection, and death cover (including terminal illness), which comes standard with an account.
Having insurance through your super can be a cost-effective way of protecting yourself and your loved ones if something happens to you.
This is because your premiums receive a tax rebate, and you’re part of a policy that covers a large group of members – which means the cost is generally lower than if you took out the same cover as an individual.
Depending on the fund, insurance may be tailored to specific roles or industries.
For example, due to the unique nature of work for pilots, cabin crew, and ground staff, it can be difficult for workers in the aviation industry to get insurance cover through an external policy. So our cover has been designed with these roles in mind.
Another benefit of receiving insurance cover through your super is that the cost may be easier to manage than an external policy. The premiums are deducted directly from your super balance, so they don’t have to be accounted for in your household budget.
Perks and benefits
There should be more to a super fund than simply putting your money away for retirement.
While most super funds offer members a variety of perks and benefits, it’s worth taking some time to think about the types of perks that matter to you.
For example, are you after discounted tickets to events, access to products from a fund’s partner financial institutions, advice and education, or other perks?
Remember that in some cases your fees may be paying for access to these perks, so take some time to consider what you’re happy to pay for.
Qantas Super offers you a range of benefits – and you can start taking advantage of them straight away.
One of our most loved benefits is our advice service, which allows you to speak to a Super Adviser over the phone or face-to-face at no additional cost. This service, along with our online education and range of seminars, can help you take control and set a plan for your financial future now.