Demystifying Super

Cutting through the confusion to make super surprisingly straightforward

Superannuation is a great, tax effective way to save for your retirement, however it can be confusing for many reasons. Considering you may be in the super system for up to 40-50 years, smart decisions along the way can make a difference of hundreds of thousands of dollars to your final balance.

You may feel overloaded with all the different media articles, rating agencies and comparison sites out there. Not all of them are created equal. Some only compare a small portion of super funds when they publish their lists and others use different methods to calculate returns, making it challenging for you to make a straightforward comparison.

So how do you find impartial resources so that you can make well informed decisions regarding your super?

We recommend MoneySmart, a free, independent resource run by the Australian government backed consumer regulator ASIC (Australian Securities and Investments Commission). Money Smart is put together by an experienced team of financial planners, consumer educators and teachers.

According to MoneySmart, one of the key things to consider when comparing super funds is performance. MoneySmart advises to “pick a fund that has performed well over the last 5 years - do not chase last year's best performer”*. Here at Prime Super we’re proud to have achieved this, with our default product, the MySuper option, delivering top quartile performance over 3,5 and 7 years to the financial year ending 30 June 2018**.

It's also important to look at net returns. That is, the investment return after fees and costs have been deducted from the returns. Lower fees don’t necessarily mean a better outcome. For example: let’s compare two funds based on fees and returns for the 7 years ending 30 June 2018 based on a $50,000 account balance:

Net member return example - 7 year return to 30 June 2018

Net Investment Return - $50,000 account less admin fee - MySuper option

As the example above highlights, Fund B might have a higher fee but with a better return, your overall position is better off than if you were with Fund A.

Prime Super has competitive fees. We’re also a profit to members super fund so any profits we do make benefit our members rather than shareholders.

Have a look at MoneySmart’s Super Comparison to find out more about;

• What super comparison websites offer
• How super comparison websites rate different super funds
• What a top rating really means
• How super comparison websites measure investment performance

Prime Super has been at the forefront of super for over 20 years. As an independent, profit-to-members super fund, our focus is on ensuring members are at the heart of everything we do. This includes helping our members by empowering them to make fully informed decisions. We want each person to get the best retirement outcome, and this underpins our member service.

*ASIC MoneySmart website 
** Quartile results compared against the SuperRatings Balanced (60-76) Index 0- June 2018

This document contains general information only and does not take account of your personal circumstances. You should obtain personal advice where appropriate. This document is current as at the date of publication and subject to change. Prime Super (ABN 60 562 335 823; RN1000276) is issued by Prime Super Pty Ltd (ABN 81 067 241 016, AFSL 219723; RSE L0000277). A Product Disclosure Statement is available from the issuer by calling 1800 675 839. Past performance is not a reliable indicator of future performance.