Comparing returns within SuperSA Triple S

Superannuation is a choice and like anything that we can choose, consumers (including me!) like to research things online before we spend money on anything. One thing that consumers do is compare returns from month to month, year to year, 10 years to 10 years of various super funds. Obviously returns is one of the key reasons to invest your money (i.e. your taking risk on your money and you want to make sure that whoever is looking after it is giving you something back in return that is the same if not better than others!).

However, it shouldn’t be the only deciding factor and returns quoted can differ from fund to fund making it harder to compare. One fund I deal with a lot in South Australia is SuperSA Triple S, now consumers get caught sometimes comparing returns to other super funds (and when I say other super funds I am referring to a standard accumulation where concessional contributions, earnings etc are taxed on the way in). SuperSA Triple S is different where employer contributions and earnings don’t get taxed until the end i.e. upon roll out or retirement for example.

What is the tax rate? Well, it can be up to 15% on unrealised gains and income. So this means that looking at SuperSA Triple S and their returns, you are comparing returns that haven’t been taxed yet, so this is an important factor but then in the same sentence as to why I say it isn’t always about returns is the fact that because your returns aren’t taxed whilst your in that fund, you potentially have more money earning you money. Yes, you still need to be pay 15% on any untaxed portion on exit of the fund but you have had the benefit of every dollar being invested and compounding for you. There isn’t a one size fits all approach but my job is to look at what your goals are, individual needs and then make sure you are in the right fund that fits those needs.