Your employer is required to pay money into your superannuation account once you are 18 years old or over and are being paid $450 or more (before tax) in a month. Although retirement is likely still a while away for you, the decision about which super fund you choose is an important one and can make a big difference to your retirement nest egg.
With that in mind, we’ve listed the super funds that received a 5-Star Rating for 18-29 year-olds with super balances ranging from $0 to $55,000 up to $750,000 and over.
Canstar’s Star Ratings consider investment performance, fees and features across super products on our database. The top performing products are then recognised with a 5-Star Rating. What makes for a 5-Star Rated product can vary depending on your personal circumstances, which is why Canstar assesses products across 25 consumer profiles, varying by age and account balance.
The tables below display the 5-Star Rated super funds on Canstar’s database in each balance bracket (as rated in our latest 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).
What about superannuation for under 18 year olds?
If you are under 18 years old, your employer may be required to pay super for you in some circumstances. According to the Australian Taxation Office (ATO), this will be a requirement if you are being paid $450 or more (before tax) in a calendar month and work more than 30 hours per week.
Canstar does not compare super funds for under 18 year olds specifically, but you can still use our comparison tables to compare products and get an idea of factors like performance, fees and features.
How does your super balance stack up?
If you are taking a closer look at your super, you might also be interested in seeing what super balance Australians of similar ages and genders currently have. The Association of Superannuation Funds of Australia (ASFA) recently put the average (mean) balances of employees as follows:
Average (mean) superannuation balances for younger employees
| Age | Male | Female |
|---|---|---|
| Under 20 | $1,440 | $1,066 |
| 20 to 24 | $9,481 | $8,051 |
| 25 to 29 | $28,319 | $23,773 |
Source: ASFA.
To fund a ‘comfortable’ retirement, ASFA says that a single person will need $545,000 and a couple will need $640,000 in super at retirement. This assumes the person draws down all their capital and receives a part Age Pension. Read Canstar’s deeper dive into the amount of super you should have at your current age to fund a comfortable retirement.
Four tips to boost your super
If your super balance isn’t as high as you think it should be, there are some steps you can take to give it a boost. Canstar’s Group Manager for Research and Ratings, Mitch Watson, recommends trying the following four things:
- 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 compare super funds by fees, performance, features and investment options with Canstar. If you need help with your super, consider contacting your super fund or speaking to a financial adviser.
Cover image source: mentatdgt/Shutterstock.com
This article was originally written by James Hurwood.