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How to Select the Best Superannuation Performance for Your Goals

 
Superannuation is one of the most critical long-term investments for Australians, providing financial security in retirement. Choosing the right super fund requires more than guesswork — it demands a careful evaluation of your goals, risk profile, fees, and fund performance.

1. Understand Your Superannuation Goals

Start by identifying what you want your super to achieve. Your retirement goals will shape your investment strategy. Here are common objectives and the corresponding strategies:
Investment Goal Recommended Strategy
Long-term growth High-growth or balanced funds
Stable returns Conservative or diversified funds
Ethical investment ESG (Environmental, Social, Governance) funds
Lower risk Cash or fixed-interest funds
Low fees Industry super funds or passive index funds

2. Compare Superannuation Fund Performance

Evaluating a fund’s historical performance over 5 to 10 years offers insight into its consistency and ability to weather economic downturns. Below are some of the top-performing funds in 2024 based on five-year annualised returns:
Super Fund 5-Year Annual Return (%) Investment Option Fees (p.a.)
Hostplus 9.2% Indexed Balanced 0.60%
Australian Ethical Super 9.0% Renewable Energy Focus 0.75%
UniSuper 8.8% Sustainable Balanced 0.67%
AustralianSuper 8.5% Balanced Growth 0.65%
REST Super 7.6% Balanced 0.72%
Indexed and industry funds generally offer strong long-term returns and competitive fees. Consider the net return after fees to determine true value.

3. Evaluate Superannuation Fees and Costs

Fees can dramatically affect your retirement balance. Here’s how fees impact a $500,000 investment over 30 years at 7% annual growth:
Annual Fee (%) Balance at Retirement
0.5% $3,800,000
1.0% $3,300,000
1.5% $2,800,000
2.0% $2,300,000
Always review investment, administration, and insurance fees to avoid unnecessary erosion of your balance.

4. Assess Risk and Investment Strategy

Your risk appetite influences the type of superannuation investment you should choose. Here’s a quick guide:
Investment Option Risk Level Potential Return Best Suited For
High-Growth High 8–12% p.a. Younger investors
Balanced Medium 6–9% p.a. Mid-career professionals
Conservative Low 3–6% p.a. Near retirees
Cash Very Low 1–3% p.a. Short-term savers
Diversifying your investments reduces risk while maximising returns. Some funds let you blend strategies to suit your unique profile.

5. Consider Ethical and ESG Super Funds

Ethical investing is gaining momentum. ESG funds focus on sustainable industries while avoiding tobacco, fossil fuels, and weapons.
Fund Name 5-Year Return (%) Ethical Focus
Australian Ethical Super 9.0% Renewable Energy, ESG
Future Super 8.7% Fossil Fuel-Free
UniSuper Ethical 8.5% Sustainable Investments
Verve Super 7.8% Women-Focused Ethical Investing
Ethical funds often match or exceed traditional performance — proving values-based investing can be financially smart too.

6. Understand Insurance in Superannuation

Most super funds include insurance by default:
  • Life Insurance: Lump sum to your beneficiaries upon death
  • TPD Insurance: Pays out if permanently disabled
  • Income Protection: Replaces a portion of your income if injured or ill
Review your coverage and premiums annually to ensure it aligns with your personal needs. You may be overpaying or underinsured.

7. Check Fund Transparency and Customer Service

Choose a super fund with clear communication, responsive support, and flexible investment choices.
Super Fund Customer Satisfaction Rating (%)
AustralianSuper 89%
UniSuper 87%
Hostplus 85%
Sunsuper 82%
REST Super 80%

Final Checklist: Choosing the Right Super Fund

  • ✅ Does the fund align with your investment goals?
  • ✅ Is the performance consistent over the long term?
  • ✅ Are fees competitive?
  • ✅ Does it offer ethical investment options?
  • ✅ Are insurance options right for you?
  • ✅ Is the fund transparent and responsive?
Superannuation isn’t a “set and forget” decision. With the right guidance and comparison, you can choose a fund that supports your retirement goals and values. If you’re unsure, get in touch with a Taxopia adviser to help tailor a strategy that suits your future.
 

Need Expert Help Choosing the Right Super Fund?

Whether you’re planning for retirement, seeking lower fees, or interested in ethical investment options, Taxopia’s super fund specialists can guide you to the best decisions tailored to your goals.

Speak to a Super Fund Specialist
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