Choosing from multiple superannuations

mvbc85 on 19/08/2014 - 00:27

Hi, I'm kind of new here in Australia and I'm looking for some help choosing a superannuation.

I'm currently working 3 different casual jobs and have 3 different supers. I know now how bad this is and I'm trying to consolidate everything into one account.

I have accounts with Sunsuper, Colonial First State and Suncorp but I have no idea which of the three is the best one. I'm also considering getting an ING account as it has no fees and I already do most of my banking with ING.

Basically, I can't seem to find a way to compare fees and interest rates of the different accounts. When comparing banks this is a pretty straightforward process, but trying to do the same thing for super accounts has just been very confusing.

Even though I'm not getting much super from those 3 small casual jobs, I'm starting a full time graduate job next year and would like to stop loosing so much money in account fees as soon as possible.

Thank you very much for any help.

Financial

Comments

    • fourredcars on 19/08/2014 - 11:31

      Second that, everyone's situation is different so go with what suits you and what your priorities are.

  • Cheeper on 19/08/2014 - 01:25
    +4

    Australian Super for performance and fees.
    http://www.australiansuper.com/

  • rockman117 on 19/08/2014 - 08:31

    Hmmm reckon it's worth putting your super with ing? I'm not too sure, but I like the idea of being able to look at my super and banking all in one place (I'm also with ing).

  • Shadow54 on 19/08/2014 - 09:54

    Be aware that AustralianSuper's insurance cover costs about double than the same cover with VicSuper. Also AustralianSuper has been criticised by some industry experts for making some investments which had a motive other than "acting in the best interests of the members" as their charter requires them to do (Judith Sloan - "The Australian") Take a look a VicSuper and also at Hesta (health industry super) but not sure if Hesta will let you join.

  • patinadiary on 19/08/2014 - 09:58

    I never understood why having a few super accounts is bad (apart from keeping track of them)
    The fees is a percentage of your super balance, right? so wouldn't you benefit having spread your super over a couple of accounts, rather then consolidating it in one?

    • fourredcars on 19/08/2014 - 11:23

      @gaurav1504: The amount of fees paid in the different accounts could (and usually is) be much higher than consolidating and paying the one fee in the one account. Even if it was just 0.5% for each account, that's eating into the multiple small balances that the OP already has.

  • patinadiary on 19/08/2014 - 13:05

    I agree on the that if you have minuscule balances, then the fees and charges would offset the gains(if any). However, I don't reckon fees is a fixed percentage, AFAIK its a percentage of the balance in the account, so with a reasonably healthy balance in a few Super accounts would help spreading the 'risk of performance' by consolidating all your super into one account.

    • fourredcars on 19/08/2014 - 15:06

      That is true that it spreads the risk of performance and it is a strategy some could consider. While some fees are a percentage based on the balance of the fund, there are some funds with additional fixed costs (admin/member) that you don't want to end up eating away at your money! I suppose by going with a large and well-known superfund with established performance figures, that the OP is already with, you would minimise the risk of performance as well.

      With the OP's small balances it would take a while to grow and with the one full time role (good luck!), he will have to choose one fund to begin contributing to - unless you can contribute to 3 separate funds with the one super guarantee?

  • Baysew on 19/08/2014 - 15:31

    Choose a No FEE option from ING and consolidate all your other super funds.
    This will stop the fee bleed that's happening at the moment.

    It's hard to compare, because past performance of funds, doesn't guarantee future returns.
    At least stop the fees - especially those who charge a weekly or per annum fixed fee.

  • ethereal88 on 19/08/2014 - 17:06
    -1

    ING isn't Australian. If they leave Australia, what then? Super is long term. How many foreign banks are left from the 80's/90's? I'd say REST. Competitive all round, more or less.

    • Baysew on 20/08/2014 - 09:21

      How many foreign banks are left from the 80's/90's?

      Of the sixteen foreign which set up after deregulation, 14 are still operating in Australia.

      Lloyds Bank NZA Ltd was bought by Westpac
      National Mutual Royal Bank was bought by ANZ

      ING operate in over 40 countries.

      The Dutch have been hanging around Australia since the 16th century.

  • Bystander on 19/08/2014 - 21:07

    ING is fee free but they still make a profit from you. They invest your money in ING funds which DO have management fees.

    Personally I think industry funds offer the best value and performance.

  • donbot on 20/08/2014 - 13:49

    In short, I think most industry funds are going to be pretty similar in terms of cost/return.

    The key part with your super is ensuring its properly invested so its working as hard as possible for you. If your 20/30/40s, you can ride out share market ups/downs - its going to be invested for years to come before you can touch it.

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