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Choosing the Super Fund That’s Right for You

Choosing the right super fund today can make all the difference in retirement. It’s important you take some time to understand what you should be looking at to find the right super fund for you.

Your Choice

When selecting a super fund, usually the choice is yours! But how do you know which one to pick? Depending on your age and personal situation, the answer will vary.

A good thing to do is make a list of what’s important to you now and for your future. Understand your risk appetite, and where and how you want to invest your money. Do your research to find the fund that meets your needs.

Things to think about when choosing a fund

There are a few things to keep in mind when choosing the fund that’s right for you. Find out more about what you should be thinking about below.

  • Fees – how much will it cost you to invest your money with each super provider you are considering? What other fees do they charge e.g. switching or exit fees?
  • Investment strategy – what type of investor are you? Are you happy for your money to be invested in options where there is opportunity for high growth, but also potential losses? There are some great tools out there to help you understand your risk appetite.
  • Investment options – you can choose how much control you have in managing where your super is invested. Depending on your confidence level, you may like an option where the super fund invests your money for you based on your age. Find out more about Virgin Money Super’s investment options
  • Insurance – what are your personal circumstances and do you have enough cover? Understanding the type and level of insurance cover you do and don’t get through your super, and understanding your insurance needs will help you assess the fund that’s right for you.
  • Fund performance – how has the fund performed over a longer-term? Super is a long term investment. So it’s important you look at the performance of each fund over a longer time period, across the full portfolio, in particular the investment options you may want to select to see if they will help you achieve your retirement goals.

Fees

 

Small differences in fees can make a large impact on your savings when you retire, and each provider will have different fees depending on their offering.

The main types of fees include:

  • Member fees – The general administration fees that cover the cost of keeping your super account.
  • Management or investment management fees (also known as MER) – The fees for managing your investment, which can vary depending on the investment options.
  • Contribution fees - Fees to cover the administration expense of receiving and investing your contributions.
  • Adviser service fees - Fees for personal advice you receive for your super and other investments. Your adviser may also receive commissions for investments they recommend to you.
  • Insurance premiums - The cost of insurance provided through your super fund. Many super funds have a default insurance option. You can usually choose to lower or increase your cover based on your needs.
  • Withdrawal or termination fees - You may be charged fees when you take money out of your super account, for example when you retire or rollover to a different fund.
  • Investment switching fees – The fees for changing investment options within your super account.

Find out how the fees at Virgin Money Super compare to other funds.

Please take a look at our Product Disclosure Statement. Also note, this information does not constitute personal financial product advice, and you may like to consult your financial adviser before making a decision about whether Virgin Superannuation fits your objectives, financial situation and needs.

 

Investment Performance

 
TIP: Because super is a long term investment, it’s best to view the performance of the fund over at least a 5 year period.

The aim of superannuation is to grow your money over longer periods of time. Since your money can rise and fall in shorter periods - sometimes in a day – it’s better to look at how your fund performs over time.

All super funds will give you information about the performance for each of their funds.

Make sure you don’t look at performance in isolation. Other factors like fees, investment options and insurance benefits can all affect the amount of growth in your account.

 

Investment Strategy

 

Since a key component of superannuation is long-term growth, the way your super is invested is critical to your balance for retirement. Some people will be happy to let their Super fund choose how the money is invested; others will want to choose their investment mix.

TIP: Not confident? No problem. You don’t have to select your own investments. Most super funds offer an option to do it for you.

How hands on do I want to be with my superannuation?

Many funds offer an index tracking fund like the Virgin Money Lifestage Tracker® option. Index tracking is a long-term strategy. It’s designed to work with the markets over time to grow your investment as much as possible. Essentially, your money is invested based on your age. When you’re younger, your money goes into higher risk investment options to gain the greatest growth. As you get closer to retirement age, your money is invested in lower risk, lower return options.

If you understand more about investment options, share prices and market movement, you may want to take more control and manage your money. Depending on where and how you want to invest your money, it’s a good idea to find a super fund that has the right level of choice for your needs.

What level of risk would I be comfortable with?

When it comes to risk, your comfort levels are completely personal. Remember all Virgin Money Super customers are able to call our team of advisers to get limited financial advice based on how you want to invest your money. Contact the Customer Care team on 1300 652 770.

Virgin Money Super Investment Options

When you’re making contributions into your super fund, you can choose how your money is invested. Virgin Money Super offers you two options for your investment strategy:

  1. You can choose to let us invest your money for you in our Lifestage Tracker® investment option.
  2. Take control and choose where and how much of your money you want invested from a range of options, all selected from our investments menu.

Find out more about the Virgin Money Super Investment options.

 

Insurance

 

In the end, it’s all about the people you love. Taking out insurance through a super account can be an easy (and tax-effective) way to look out for them. Payments can be paid directly from your account, allowing you to keep more of your after-tax pay to spend on the things you love.

With Virgin Money Super we offer you a range of insurance benefits including:

  • Automatic Insurance Cover – pre-approved Death & Total and Permanent Disablement (TPD) insurance (on an opt-out basis) based on your age.
  • Tailored Insurance cover - choose the level and type of cover you’d like to apply for:
    • Death only, or
    • Death and TPD cover, and/or
    • Income Protection cover.

Combining superannuation with insurance means your insurance payments come straight out of your superannuation account.

So when choosing a fund, think about whether you'd like your superannuation and insurance under the one roof.

We’ve just given you a snapshot here, but you can find full and detailed information about our Insurance options.

TIP: Look at your personal situation and needs to decide whether you would like to have insurance with your super.
 

How to make super work for me

 

You’ll definitely want a big super balance at retirement. You can do this by:

  • Making contributions
  • Having strong investment performance and strategy
  • Paying less in fees

The section on Building your Super contains all you need to know about making contributions.

 
 
 

Important stuff

The information above is intended as a guide only. If you are unsure about who you need to make contributions for we suggest you contact the ATO.

As an employer, it's important you fully understand your superannuation obligations as failure to meet these minimum requirements could mean financial penalties from the Government.

QuickSuper is a registered trademark and a product owned and operated by Westpac Banking Corporation ABN 33 007 457 141. Westpac’s terms and conditions applicable to the QuickSuper service are available after your eligibility for the free clearing house service is assessed by Virgin Money Super.

This information is of a general nature only and does not take into account your personal financial situation, needs or objectives. As we don't know your financial needs we can’t advise if Virgin Money Super will suit you. Please consider the Product Disclosure Statement, Product Guide, Insurance Guide and Financial Services Guide before making a decision about the product. For further information about the insurance options refer to the Insurance Guide.

The Superannuation Fees described on the Fees page apply from 12 December 2016. Here you'll find the official Superannuation Industry (Supervision) Act 1993 ('SIS Act') definition for each fee type.

While there are no contribution, withdrawal or switching fees, a buy/sell spread applies at a fund level when purchasing and selling units. Other fees and costs may apply such as insurance fees. These are retained by the fund and are not paid to Virgin Money or the Trustee. All fees are inclusive of Goods and Services Tax (GST) and net of Reduced Input Tax Credits (RITC).

Before you rollover or consolidate your superannuation, you should check to see if insurance or other benefits will be impacted or lost. Some funds may also charge withdrawal or exit fees.

It is very important to note that superannuation is generally a long term investment. Past investment performance is not a reliable indicator of future performance and should never be the sole factor considered when selecting a fund. It is very important to note that superannuation is a generally long term investment and that past performance is not indicative of future performance.

Prepared by Virgin Money Financial Services Pty Ltd ABN 51 113 285 395 AFSL 286869. Virgin Money Super is a plan in the Mercer Super Trust ABN 19 905 422 981. Virgin Money Super is issued by Mercer Superannuation (Australia) Limited (MSAL) ABN 79 004 717 533 AFSL 235906 as trustee of the Mercer Super Trust. For more information about Virgin Money Super, please refer to the PDS which is available free of charge on our website or by calling the Customer Care team on 1300 652 770.

Source: https://www.ato.gov.au/About-ATO/Research-and-statistics/In-detail/Super-statistics/Super-accounts-data/Super-accounts-data-overview/

SuperRatings award reflects a funds' value for money, and is awarded based on a rating system of investment, fees and service. SuperRatings does not issue, sell, guarantee or underwrite this product. Go to www.superratings.com.au for details of its ratings criteria.

The amount shown is an estimate only of the Indirect Cost Ratio (ICR) generally expected to apply to these investments for 2016-2017 Financial Year.

Virgin Money Super’s fund returns shown above are net earnings and are calculated after the deduction of applicable taxes and costs. The results are current as at 31 January 2017. These results are provided by Virgin Money Super Asset consultants. It is very important to note that past performance is not indicative of future performance.

The median results are provided by SuperRatings and are current as at 30 June 2016 as a benchmark only. Virgin Money Super has not verified its accuracy so we can’t guarantee that it is correct, and accept no liability for inaccuracies, errors or omissions.

Eligibility crtieria and fees apply. Aged 15-64 Death and Total and Permanent Disablity cover. Automatic Insurance cover is subject to Exclusions including Pre-Existing Medical Condition exclusion. This means that, you won’t be covered for any illness, injury, condition or related symptom that you were aware of or should have been aware of, or had a medical consultation for, were planning to have a medical consultation for, or should have had a medical consultation for in the two years prior to cover commencement. See the Virgin Money Super Insurance Guide for more information.

Automatic Death & TPD cover for Australian residents aged 15-64 with our default insurance offering. Conditions and Exclusions (such as pre-existing medical conditions) apply. See the Virgin Money Super Insurance Guide for more information.

The case studies shown are hypothetical and are not meant to illustrate the circumstances of any particular individual. All claims will be assessed in accordance with the policy terms. In the event of any inconsistency with other material, the insurance policy terms will prevail.
For further information regarding Virgin Money Super’s insurance cover, including terms, conditions and eligibility, please refer to the Insurance Guide which forms part of the Product Disclosure Statement (PDS). The PDS is also available free of charge by contacting Customer Services on 1300 652 770.
This information is of a general nature and has been prepared without taking account of your personal needs, financial circumstances or objectives. Before acting on this information, you should consider the appropriateness of the information, having regard to your needs, financial circumstances and objectives. You should read the relevant Product Disclosure Statement available by calling 1300 652 770 and consider if this product is right for you before making a decision to acquire or continue to hold the product.