I am with ING Direct Super account. I was wondering which super would be good for me if I wish to switch this to somewhere else?
I am mostly looking for most perks (example higher insurance payouts, maybe other benefits) + definitely good return. What do you guys use? And why
And, are there any super with double digit return year after year?
So indexed means whatever market does?
ASuper, if you use their indexed passive investments and not their actively managed default options
Australian Super doesn't have any passive index options
Though their members direct offers a competive way to buy common broad market etfs at a low cost.
Australian Super doesn't have any passive index options
This is incorrect. I have a significant portion of my money in Australian Super's Indexed Diversified option.
True, my mistake.
It is a passive index, but the ratios are somewhat 'managed' within the bands they allocate, and there is a rather significant portion of fixed interest/cash within that allocation also.
https://www.barefootinvestor.com/articles/i-dont-want-this-t…
Bottom line: Australia’s biggest super funds use an aggressive ‘one-size-fits-all’ strategy which might not work if you’re nearing retirement.
Yet there is an alternative. They’re called ‘target-date funds’ (or ‘lifestyle funds,’ same thing), and they’re becoming more popular, with a large amount of funds offering one.Here’s the gist:
You pick a target date fund based on your age, and it automatically adjusts your investments as you approach retirement. So, when you’re younger, it invests heavily into growth investments like shares (because you have plenty of time to ride out the ups and downs). As you age, it gradually shifts you into more conservative stuff, like cash and fixed interest.
These funds are a great hands-off option, especially if they’re built with ultra-low-cost index funds.Call your super fund and speak to one of their financial advisors (your first appointment should be fee-free and obligation-free). Ask them to review the asset mix you’re invested in, and have them compare it to the asset mix of an index target-date super fund for your age. Then ask them what they’d recommend, and why.
Don't all super funds do the lifecycle stages as standard?
I compared MySuper options from Hostplis, Aware, AustralianSuper and UniSuper from ATO's comparison tool and 3 (all except Aware) of them don't change their strategy over time. Definitely worth checking up if you're not sure. This is for the default MySuper option, your own plan might vary.
https://files.ozbargain.com.au/upload/56747/117259/mysuper.p…
No. Most MySuper funds will use some sort of "one size fits all" diversified investment option as their default.
before considering any advice on ozbargain please note all advice is general advice and does not cosndier ur personal or financial situation
please read the relevant pds or tmd to ensure it is appropoirate for you or engage a financial advisor.
I was wondering which super would be good for me
I depends on your personal circumstances.
Past returns are not a good indicator of future returns so no one really knows if something will hit double digit returns. Also note that your returns depend on your appetite for risk and how the world/Australian economy goes so always expecting double digit returns is a bit foolhardy.
How would WWIII affect one's super?
Not a financial advisor but work closely with financial products. No correct answer, go for which one is best for you. Some even have different member offers.
Too many so no idea, but important to only have one super account.
So here's the thing that many people miss … the "superannuation fund" will not determine your outcome in retirement.
Your outcome in retirement will be determined by, amongst other things, your history of contributions and the asset classes in which you are invested.
With very little effort, you can find any number of "superannuation funds" that will allow you to invest in a wide range of asset classes of your own choosing. Beyond how much you put in via contributions, this will be the single largest determinant of your accumulated retirement savings over time and ultimately your income in retirement.
Such an important point; super is the wrapper but you can have many, many different things within that wrapper.
I would only make one suggestion:
"your history of contributions, the asset classes in which you are invested, and the fees charged (both explicit administration/insurance fees as well as embedded asset management fees for your chosen investment option(s)"
By luck I had actually did an in-depth analysis on this a few days ago (coming from ING Direct as well).
For set and forget, you'd beat most default super funds with an indexed fund for low fees and decent returns. Hostplus Index Balanced has returned marginally higher returns than Australian Super Index Diversified over the last 5 years, with marginally lower fees as well. As your balance grows past 50k, Hostplus' lower percentage based admin and investment fees compared to Australian Super becomes more evident (at 50k, $2 fee p.a. difference; at 100k, $30 fee p.a. difference). If you feel like taking on more risk, Hostplus has a new offering called Index High Growth which is slightly more expensive, but it has no performance history.
Australian Super and Hostplus are (imo) the lowest cost if you want to do "semi-active" investing with your super, e.g. with ETF options without SMSF (both do brokerage through UBS iirc, so the ETF costs are the same, but you get slightly different selection of ETFs to choose from). It will cost more in admin fees each year compared with the set and forget option. I think the ETF selection would matter more than the small annual difference in fees between the two.
Despite ING's high fees, the reported performance does seem to be better than the indexed funds though, so I am also a little stuck. In theory these are managed funds but the descriptions mention that the Australian Shares, International Shares, Listed Property and both Fixed Interest options track indexes.
Performance at 1, 3, 5 years (to 30 June 2024):
Hostplus Index Balanced - 12.18%, 5.93%, 7.19%
Australian Super - Index Diversified - 11.51%, 5.46%, 6.98%
Australian Super - Member Direct - DEPENDS ON YOUR ETF
Hostplus - ChoicePlus - DEPENDS ON YOUR ETF
ING Direct - Single Sector 50/50 Australian Shares/International Shares - 14.96%, 8.52%, 9.71%
Fees at 50k balance:
Hostplus - Index Balanced - $135
Australian Super - Index Diversified - $137
Australian Super - Member Direct - $317
Hostplus - ChoicePlus - $333
ING Direct - Single Sector 50/50 Australian Shares/International Shares - $384
This is super helpful Thanks
What is your current balance of super?
Then we can provide suitable advice!
Why switch just to change insurance?
If that’s the reason to switch, it’s a bad idea
I can't advise about insurance, I dropped all superannuation based insurances when I was in my mid-40s. I no longer needed it. Neither of my kids have insurance as they have no dependants.
I run multiple superannuation funds (Generally an inefficient structure but I have my reasons and it only costs me a small amount extra).
2/3 of my money is with HostPlus. The asset allocation is divided thus:
Indexed Balanced 50%
Indexed High Growth 25%
Socially Responsible Investment - Defensive 12.5%
International Shares - Indexed 6.25%
Australian Shares - Indexed 6.25%
I'm not saying others should emulate this mix but it suits my purposes.
1/3 of my money is with Australian Super.
Balanced 50%
Indexed Diversified 50%
I chose both because the fees were low & the returns "not terrible". There is a school of thought that you might be better off paying higher fees for better returns but I've got no idea how you'd run the figures on that.
Higher insurance = higher premium. You get what you pay for
Lowest fees are Hostplus and Rest and ASuper, if you use their indexed passive investments and not their actively managed default options
Best returns - if we knew then we would all move to it. If you pick indexed choices then you can do no worse than the market (less fees)