You are now legally an adult and your employer is required to begin paying money into your superannuation account (if you are earning over $450 per month). One of the most important choices you can make in relation to your super is which fund you’re with, and it’s a choice that could end up making a massive difference to your savings upon retirement.
With that in mind, we’ve listed the super funds that received 5-star ratings for 18-29 year-olds with varying super balances; from between $0 and $55,000 up to $750,000 and over.
Canstar factors in investment performance, fees and features when deciding if a fund offers outstanding value or not. Outstanding value means different things to different people, which is why Canstar awards Star Ratings to superannuation funds across 25 consumer profiles, varying by age and account balance.
The tables below display the 5-Star super funds on Canstar’s database in each balance bracket (as rated in the 2018 Superannuation Star Ratings) for Australians aged between 18 and 29:
The table below displays the 5-Star super funds on Canstar’s database for 18-29 year olds with a super balance between $0 and $55,000, sorted by provider name (alphabetically).
The table below displays the 5-Star super funds on Canstar’s database for 18-29 year olds with a super balance between $55,000 and $100,000, sorted by provider name (alphabetically).
The table below displays the 5-Star super funds on Canstar’s database for 18-29 year olds with a super balance between $100,000 and $250,000, sorted by provider name (alphabetically).
The table below displays the 5-Star super funds on Canstar’s database for 18-29 year olds with a super balance between $250,000 and $750,000, sorted by provider name (alphabetically).
The table below displays the 5-Star super funds on Canstar’s database for 18-29 year olds with a super balance of $750,000 or more, sorted by provider name (alphabetically).
How does your super balance stack up?
According to the Association of Superannuation Funds of Australia’s (ASFA) retirement standard data from October 2017, the average superannuation balances by age are as follows:
| Age | Mean balance ($) |
|---|---|
| 15-19 | 485 |
| 20-24 | 5,501 |
| 25-29 | 21,372 |
| 30-34 | 38,386 |
| 35-39 | 56,715 |
| 40-44 | 80,899 |
| 45-49 | 114,616 |
| 50-54 | 135,290 |
| 55-59 | 180,689 |
| 60-64 | 214,897 |
| 65-69 | 207,105 |
| 70-74 | 161,974 |
| 75-79 | 76,049 |
| 80-84 | 42,912 |
| 85+ | 14,374 |
Source: ASFA Retirement Standard, October 2017
For a ‘comfortable lifestyle’ in retirement, ASFA states that retirees need the following amounts in super at the time of retirement:
- Couple: $640,000
- Single: $545,000
According to ASFA, a comfortable retirement assumes the retiree/s will draw down all their capital and receive a part Age Pension.
Source: ASFA Retirement Standard, April 2018. All figures in today’s dollars using 2.75% AWE as a deflator and an assumed investment earning rate of 6 per cent. They are based on the means test for the Age Pension in effect from 1 January 2017.
Four tips to boost your super
According to Canstar’s Group Manager of Research and Ratings Mitch Watson, you can do the following four things to help boost a low super balance.
- Check your fees: “Fees have a large impact on your balance proportionally, so make sure you aren’t being overcharged.”
- Assess your insurance coverage: “Is insurance critical for you, and if so, is taking out a policy within your super the best option for you? Premiums may increase as you get older so these questions are worth asking.”
- Select the right investment option: “Understand which investment option you are in and consider if it’s the right one for your lifestage and risk profile. Investing in cash isn’t necessarily going to grow your super balance at a quick pace, and conversely, going into aggressive could actually reduce your balance in the short term.”
- Consider making additional contributions to grow your balance: “Compulsory contributions will grow over the next few years but a bit extra now can really help you in the future.”
You can get help finding a super fund that has the right balance of fees, performance, features and investment options for you with Canstar.