The best superannuation funds in Australia in 2022
With 2021 done and dusted and 2022 well underway, it’s a good time to look ahead to better understand what the best Australian super funds of 2022 are.
The best super fund for you can change based on your needs
It’s important to note that while factors like fees and investment performance are vital in determining best and worst funds, ultimately the best fund for you will depend on your individual circumstances. This means not only considering fees and performance, but other factors like:
· Member benefits
· Customer service
· Ethical investment practices
· Your risk profile
· Insurance options.
It’s also important to remember that past performance is not an indication of future fund performance. Given this, we’ve outlined some of the best superannuation funds to watch in 2022, based on a range of factors. Before choosing a super fund, remember to conduct your own research into the fund, to determine if it’s the right fit for you.
Established in 2006 after the merger of ARF & STA, Australian Super is the largest superannuation fund in Australia. The fund has consistently provided high returns over a 10 and 5 year period, making it a great option for young people or students who are looking to invest long-term. The balanced default investment option also performed second best out of funds listed on Review my Super over a 5 year period.
Australian Super also has fees that are below the average, when compared to other funds listed on Review My Super.
Another fund to watch in 2022 is UniSuper. This fund was awarded best super fund of the year in 2022 by Money Magazine, and named highest quality fund of 2022 based on investments, fees, and insurance options by Chant West. The fund offers a large array of investment options, including 7 ‘Pre-Mixed’ and 9 ‘Sector’ options, catering to a range of risk profiles. UniSuper also had the lowest Total Expense Ratio (TER) in 2021, with a TER of 0.65%. There are also a range of insurance options for members, making UniSuper a great all-rounder.
For those on a lower income, choosing a fund with low fees is vital. This is because a low fee account can help ensure administrative costs don’t eat away at your smaller balance over time. Student Super offers accounts with zero set-up fees, and zero fees for balances under $1,000, making them a great option for people with a low starting balance or who are on a lower income.
Most superannuation funds provide insurance cover to their members. This basic level of cover can include income insurance, life insurance, and total & permanent disablement (TPD) insurance. Rather than opting for default cover, Review My Super recommends comparing insurers and choosing the best option for your individual needs. This will ensure you avoid paying too much, or not having the type of insurance suited to your personal situation. According to Omnilife, the best super fund by insurance is IOOF Pursuit Focus Personal Super, which has recently rebranded to Insignia Financial. The fund scored 70/100, and offers life, TPD and income protection insurance.
Hesta’s Sustainable Growth Fund
An ethical superannuation fund is one that bases investment strategies on ethical responsibility. Ethical funds avoid investing in industries that are known to cause damage to the environment and society, for example companies involved in fossil fuels, coal, logging/deforestation, live animal exports, tobacco, gambling, or nuclear weapons. The best ethical fund as rated by Review my Super is HESTA’s Sustainable Growth fund. This fund has been the best performing balanced super option in Australia for 15 years, and offers a 23% average annual return over a 1 year period. The fund seeks to balance ethical investment options with companies that deliver strong long-term performance.
Review My Super can review every Super Fund in Australia and can help you understand what YOUR money is doing for YOU!