As a busy tradie, thinking about retirement is often way down the bottom of your to-do list. However, the decisions you make today about your superannuation fund will significantly impact how much your contributions are worth later in life. It starts with choosing a super fund that offers great long-term returns, reputation, and reliability.
Is your business on track? Check with our free Business Plan Template
Low on time? Skip ahead!
- Are you a laid-back or hands-on investor?
- The best Australian superannuation providers for tradies
- A worry-free retirement
1. Are you a laid-back or hands-on investor?
When choosing a superannuation fund, many Australians end up with a default retirement product of the super fund. Sometimes, this is because they haven’t selected a particular fund when the choice is offered. They’re low-frills, lower-fee options that generally offer more ‘balanced’ investment profiles. But, depending on your savings goals and where you are in your career, you might want to take a more aggressive or conservative approach.
You also have the option to choose how your superannuation is invested. This means you can either entrust the decision to your provider or actively choose your investment strategy based on your financial goals and risk tolerance.
What is a Self-Managed Super Fund (SMSF)?
A self-managed super fund, or SMSF, is a private super fund that you actively manage yourself (often alongside an advisor). It's the most hands-on way of managing your retirement savings, more so than any of the retail options listed below. Although SMSFs certainly aren't right for everyone they can be a powerful tool for tradies looking to build towards retirement using assets such as directly owned residential or commercial property unavailable in other superannuation structures.
2. The best Australian superannuation providers for tradies
If you want to invest in funds that care about the same things you do while making sure you get the most bang for your buck, these four super fund providers stand out:
-
AustralianSuper
AustralianSuper stands out as one of Australia’s largest and most trusted super funds, boasting over 2.4 million members. With a track record of long-term performance, it provides various investment options, competitive returns, and low fees. What’s more, it considers a range of environmental, social and governance issues when selecting investments.
Learn more about AustralianSuper.
-
Hostplus
Known for delivering robust long-term returns, Hostplus caters to a wide range of industries, including the construction and trades sector. They offer a range of investment options, including a high-growth option that could be appealing if you want to maximise your returns.
-
Australian Retirement Trust
Australian Retirement Trust is another well-regarded super fund with a track record of solid performance. They offer a variety of investment choices, and their ethical investment options may align well with the values of tradies who prioritise social responsibility.
Read more about Australian Retirement Trust.
-
HESTA
Originally designed for healthcare professionals, HESTA has broadened its offerings to include other professions, including the trades sector. It’s known for its impressive long-term performance and commitment to responsible investing, making it another great option for those seeking ethical investment opportunities.
Get more information about HESTA.
3. A worry-free retirement
When choosing a super fund, it always pays to check each provider’s investment options, fees, returns and ethical commitment. Also, look for insurance options that align with the risks and needs of your trade job. Finally, take time to review your choices carefully and pick the fund that resonates with your values and future goals. As and when your financial situation evolves, you might also choose to review and switch to a provider better aligned with your new circumstances.
Getting clarity on your business finances is vital for the growth of your trade business and your financial security. Sign up for a 14-day free trial with Tradify. Or visit one of our live demo webinars to see Tradify in action.
This article is not intended to be financial advice. Please discuss your individual financial situation with your registered financial advisor, bookkeeper, or accountant.
