Check the fund’s performance and fees
QHi Paul, my query is should I change my super fund? I have been with an industry fund for 30 years and have worked full time and part time. I’ve worked 20 years in retail and seven in aged care. I contribute $20 weekly and my aged care workplace does too. My balance is only $68,000 and the fund’s fees are about $1800pa. Now they have changed their life insurance from $4 a week to $22 a week. I am only a part-time/casual employee now and maybe work 20 hours a week if I am lucky.
I am concerned about the level of your fees, Sharon, and also wondering about the performance of your fund. $68,000 is great to have put aside for your future, but after nearly 30 years of work I would hope your balance would be higher. I appreciate that many of these years may have been part time, but I would encourage you to check out your fund’s performance over the three decades.
The leap in your insurance costs from $4 a week to $22 has me scratching my head. Sadly, for all of us insurance costs increase as we get older, but why it would jump so dramatically is beyond me. Has your fund increased your cover, or included income protection insurance?
Your starting point is to talk to your fund about its performance over time, investment fees, insurance cover and the cost. Once you have made some notes on those issues, you then have the facts to have a chat with other industry funds. It is very important you get that combination of low fees, good performance and the insurance cover you need.