Don’t settle for a default

The superannuation system is worth a hefty $3.3 trillion. Each quarter, a further $30 billion is added to the pool. Yet despite the tsunami of cash flowing into super, 14 million Aussies have left it to their employer to select their fund. In many cases, these “default” funds are MySuper products – simple, low-fee funds that provide the basics in insurance and invest members’ money in either a single diversified or lifecycle option. Strict rules surround how your boss can select a default fund. Even so, it’s a fair bet that your boss’s views about what makes a good fund may differ from your own, especially when it comes to something as personal as investment choices. More to the point, the regulator APRA recently reviewed around 80 of the nation’s MySuper products, slapping 13 with an “underperformance” result. So, now is a good time to review your default fund