Best Super Funds in 2020!
A good superannuation fund can make a huge difference to the quality of life you can expect to maintain once you reach your retirement years. Your balance may not seem important now, but whether you retire in 10, 20 or 30 years, the discrepancy in value can be worth hundreds of thousands of dollars dependent on your choice of super fund. Here are the best super funds of 2020!
Retail Super Funds
This year's award for best retail super fund goes to which also won the award last year. Founded in 2014, Future Super focuses on ethical investing, choosing to build funds with new renewable energy sources and zero fossil fuels. They also claim that since their inception in 2014, the Balanced Impact option has returned a total of 41% (to 31 July 2020), averaging 7.18% per year. Reviewers have found switching to Future Super to be an easy process, and really like how the fund reflects their personal values in choosing to invest for a cleaner future.
Another super fund which has excellent ratings thus far is , a relatively new fund that launched in December 2018. As it was only founded quite recently, it has a low number of reviews so it wasn't considered for this year's awards, but we are interested in seeing if they will continue to garner stellar ratings over coming years. A super fund founded by women for women, Verve Super aims to help women understand their finances and build their wealth, offering financial coaching and online learning resources through Verve Academy. As at the 31st July 2020, they claim that they have achieved a return of 12.12% since inception, and a 6 month return of 10.16%. Partnering with Future Super as the asset manager, they set ethical screening requirements and focus on investing for a cleaner, greener world. Customers have so far been very happy with the support and service they receive from Verve Super.
Industry Super Funds
This year none of the Industry Super Funds performed well enough to receive an Award. As not-for-profit organisations, industry funds typically charge lower fees compared to retail funds, and profits are returned to members. Historically, they also tend to have higher returns on investments than retail super funds. Unfortunately, we found that many industry funds' ratings were let down by unsatisfactory experiences with customer service and long processing times for claims.
If you would prefer an industry fund, currently has the best rating on ieatwords.com.au. Although it has an overall rating of 4.0, its average rating in 2020 improved to 4.51. It also has an average Transparency rating of 4.51 and Customer Service rating of 4.56. As at 30 June 2020, they claim a 10.02% p.a return over a 10 year period for their Core Pool option. Reviewers are pleased with the returns on their super, customer service and low fees.
SMSF / Small Funds
When you have a self managed super fund (SMSF), you'd rather be spending your time managing your own investments than dealing with pesky administration tasks. This year the Best SMSF Award goes to an accounting firm which specialises in SMSF administration. Although they have investment restrictions (you can only invest in Cash Accounts, Term Deposits, ASX Listed Securities and Managed Funds), clients are impressed with their professionalism, overall service and reasonable fees.
Another SMSF that rates highly is They didn't receive enough reviews this year compared to Online Super Fund, so unfortunately they aren't a recipient of the award. Despite this, customers report an excellent service that is consistent and catered to the individual. Redwood Advisory are also property specialists, and can help you invest in property in Australia and internationally in the US through your SMSF.
Public Sector Super Funds
Winning the award for best public sector super fund for the second year running is . Now open to anyone, VicSuper is a profit-to-member super fund. As at the 31st October 2020, VicSuper claims a 10 year performance return of 8.03% for Balanced portfolios with a Transition to Retirement (TTR) feature, and 9% for Balanced portfolios without the TTR option. Clients are generally impressed with the financial/retirement planning advice they receive and find the staff helpful, friendly and professional.