Choosing A Superannuation Fund
Choosing a superannuation fund is not mandatory, although, it will most definitely help you provide financial security for your future. There are different types of superannuation funds that may suit your preferences. However, be sure to do your research before choosing a superannuation fund.
If you are already happy with the superannuation fund that you have chosen, there is no more need to move to the fund that your employer may be offering. You have the right to decide which superannuation fund to join.
The People Choosing a Superannuation Fund
The following are the people who are qualified for choosing a superannuation fund:
- Fresh graduates who have just started on their first jobs
- Employees who have been working for several years already
- Self-employed people
Choosing a superannuation fund also requires certain eligibility qualifications. These are:
- A person is involved in an agreement that does not need superannuation fund support
- A person's superannuation fund is being paid via notional agreement preserving state award
- A person is not involved in any agreement or award
When Choosing A Superannuation Fund Is Not For You
- Choosing a superannuation fund isn't for you if the superannuation fund you are involved in is being paid for through an agreement or award
- Choosing a superannuation fund isn't for you if the payment conditions for your superannuation conform to an agreement
- Choosing a superannuation fund isn't for you if your superannuation is a type of defined benefit fund
- Choosing a superannuation fund isn't for you if your superannuation already allows you to enjoy certain benefits
What to Expect In Choosing A Superannuation Fund
When choosing a superannuation fund, you will probably be asked by a representative of your superannuation to provide your TFN (tax file number). It is advisable to comply on or before the date the representative specifies, otherwise you could end up forfeiting the co-contributions on your superannuation or be unable to acknowledge other contributions. Furthermore, not having a TFN after choosing a superannuation fund may cause your fund to pay a higher income tax for some contributions.
On the other hand, if you are choosing a superannuation fund as an employee, you should expect your employer to provide you with a NAT 13080 or standard choice form. This choice form must be given to you in 28 days starting from the time when you start working. The standard choice form has two options:
- Your employer will be the one choosing a superannuation fund for you
- You will be choosing a superannuation fund
You might also notice that the form not only has options for choosing a superannuation fund, but it also provides options for which businesses to invest your savings in.
Other Information About Choosing a Superannuation Fund
If, after choosing a superannuation fund, you decide to contribute to another one, you might want to consider rolling both funds into one. Doing so will save you time and will allow you to better organise your payments. Note, however, that there may be fees and other conditions for rolling money over. Hence, make sure to know more about combining supers to be prepared for the conditions. When choosing a superannuation fund, gather as much information as you can for you to arrive at a better decision.
