How does smartMonday compare?
That is a great question and it’s one we are asked regularly by members and prospective members. While we can’t tell you which is the best fund for you, if you are a smartMonday member we can help you to understand superannuation so that decisions you make will be more informed. Contact your smartCoach team to learn more about your smartMonday account, in personalised and easy to understand terms.
Since we can’t compare funds for you, we have enlisted the help of ChantWest. ChantWest has been rating super funds for over 20 years and expresses those ratings in terms of Apples - 5 Apples are allocated to the highest quality super fund, and 1 Apple to the lowest quality.
So, just as it’s true in life that it’s generally better to have more Apples, it’s also true in super but, with one consideration: Super is not necessarily simple or straightforward so here is a framework to help you compare super funds. Before you decide on what super fund might be best for you, you should consider1:
- How hands on do you want to be? Some people get a kick out of making their own investment choices – constructing their own strategy, keeping an eye on investment markets and fine-tuning their portfolio themselves. Others…not so much. So be sure your selected super fund offers a ‘hands-on’ level that suits you best, such as:
It’s not just about fees, your super balance grows best when the net benefit [(investment returns x current balance) minus fees] is greatest. So, make sure you check out the fees the super fund charges for your preferred investment options as well as the performance2 of those options.
We all know that insurance isn’t just insurance - see what cover is available and what it will cost. Some funds offer default insurance cover provided with no medical check necessary (that’s called ‘automatic acceptance’).
Extra employer benefits – for their preferred super fund, your employer may pay more than 9.5%, may have negotiated lower fees, or make extra contributions to cover some of the fees and insurance costs. Don’t forget to ask them.
Above all, choosing a super fund is like picking a well-balanced diet that you are comfortable with and can stick to over the long haul. Chat to a smartCoach to find out more about the ongoing support members can receive from smartMonday.
- Low hands on: Look for a fund with a MySuper option
- Medium hands on: Look for a fund with a Pre-mixed investment option
- High hands on: Look for a fund with a Sector investment option