"This is the most critical time in superannuation history over the next 6 months and consumers should be totally focussed on their situation to see they don't get left behind." Said Russell Medcraft from Financial Choice
"If I'd stayed with that fund basically I would have ZERO." Said Ingrid Montgomery
That's right .. ZERO. Tens of thousands of Australians are throwing their retirement nest egg away ... in expensive funds that aren't performing, and in these boom times, they SHOULD be. You CAN change that, like mum of three Ingrid Montgomery and Ashleigh Gonzales. ..and they're laughing.
We're going to show you how they did it ... It's a brand new way to choose top super funds and it's so easy. We'll also reveal the BEST-rated funds in the nation that can multiply your money AND keep it safe.
"I had no idea there was an entry fee of $20,000 and that the annual fee was just over $12,000." Said Ingrid Montgomery from Choice
That WAS Ingrid's fund, Perpetual, where she was planning to put $450,000 she got from a property settlement. But faced with those crippling fees, she changed funds .. to AsGard. No entry fee on contributions, low annual fees less than $2000 ... a massive bonus for her retirement.
"The difference would be approximately $448,000 by the time I turn 65." Said Ingrid Montgomery
Ashleigh Gonzales found her husband had 6 lost super funds, which by July 1st would be claimed by the Federal government. She consolidated them into his industry fund TWU .. then found an even better superfund.
"Not only have we saved $12,000 consolidating into one fund but now by moving it into a better fund we will be able to save an additional $24,000." Said Ashleigh Gonzales
7 in 10 people stay in the same old super fund letting it make decisions FOR them. It's called the default investment option... and that can potentially destroy your nest egg says superannuation expert, Russell Medcraft, CEO of findmybestsuper.
"This new website, Find My Best Super, will literally save you tens of thousands of dollars in fees, by selecting the best superfund available to you." Said Russell Medcraft
Today Tonight's been given a sneak preview of his website, a first for Australia.
"This site will rate all the superannuation funds, compare fees, returns, insurance so that you can guarantee that you will get the best superannuation outcome." Said Russell Medcraft
It lists hundreds of super funds which have been analysed, compared and rated, best to worst by independent research company SuperRatings. Findmybestsuper is how Ingrid and Ashleigh discovered the best funds for them.
"Put in your details, compare it against any other fund in the marketplace to see the difference that fees make to your superannuation balance ...butt there's a whole raft of things and that's where you should enlist the services of a qualified advisor to guide you through all those different funds." Said Russell Medcraft
A 35 yr old earning $70,000 a year with $100,000 in super ... comparing the impact of fees of 4 major balanced option funds .. In AMP his retirement lump sum would be $363,000, Mercer $420,000, Australian Super $488,000, AsGard you'd end up with $506,000 on retirement, up to $143,000 more.
Jeff Bresnahan, Managing Director of SuperRatings which analysed 300 Australian funds says fees are just one of the factors they use to rate them.
"So you can see fees these days from anything from point-six-of-one percent up to about three-point-four percent per annum. So there's a differential there of at least five times.
You've got investment returns, you've service, you've got governance, you know, who actually is behind the whole fund, is it still going to be there in 15 years time? Insurance costs, all those sort of things blend in together to say, how good is that fund." Said Jeff
Top 10 Super Funds for 2013 .... AUSCOAL, AustralianSuper, CareSuper, Catholic Super, HESTA Super, HOSTPLUS, LGsuper, QSuper, Sunsuper, Telstra Super.
"I am in the right fund and I know I can really sleep at night knowing that my money is invested wisely and will keep me in the life I am accustomed to when I am retired." Said Ingrid Mongomery