How often do you give your super a health check?
If you find yourself in the same boat as most younger Australians, the answer is probably “not very often.” Research by ASIC’s Moneysmart found that fewer than 30% of Aussies aged 29 to 44 check their super fund’s performance even once a year—some not at all!
There’s an abundance of reasons why it’s a good idea to check on your super more regularly, but the most important (yet seemingly most simple) is this: small changes in performance or fees can make a BIG difference in retirement!
In fact, the Productivity Commission estimates that paying just 0.5 percentage points more in annual fees could cost the average full-time worker a staggering 12% of their super balance by the time they reach retirement. That works out to be a whopping $100,000! Six figures lost, just by letting high fees and underperformance fly under the radar!
But don’t fret just yet, you’re talking to the experts here! We’ve got three simple steps to ensure your hard-earned super is working just as hard for you.
1. Check your super fund’s fees
Let’s be honest—super fees can be a minefield, and they add up quick! Between administration fees, investment fees, performance fees, insurance premiums, and other sneaky charges, it’s no wonder many Aussies find them confusing.
To make matters worse, there’s no universal standard for how fees are disclosed, making it tricky to compare funds and understand what you’re really paying. Which is why many experts in the space, such as Vanguard, are pushing for greater transparency around superannuation fees.
So, where to start? Your annual super statement is your best first step. It outlines your fund’s fees and investment performance, and you can usually access a digital copy through your fund’s website or online portal.
When comparing your fund to others, be sure to make like-for-like comparisons. If you’re in a balanced option, compare it to other balanced options—not a high-growth or conservative fund with a completely different risk profile.
Most super funds publish fee and performance details on their websites and in product disclosure statements. You can also use the ATO’s YourSuper comparison tool to check how your fund stacks up.
And remember—super is a long game. ASIC recommends reviewing fees and performance over at least five years to get a clearer picture of your fund’s value.
2. Check how your super is invested
Super isn’t just about fees—it’s also about how your money is invested. The right investment mix can make a huge difference to your final balance, so it’s important to ensure your super is appropriate for your personal circumstances and aligns with your long-term goals.
For many Australians, their super is invested in a balanced fund by default. These typically hold 50–70% in growth assets (like shares and property) and 30–50% in defensive assets (like bonds and cash). But is that the right mix for you?
If you’re early in your career, you might be comfortable taking on more risk with a more aggressive investment approach, which could generate higher returns over time. On the flip side, if you’re closer to retirement, a more conservative approach can mitigate potential risk of losses from market downturns.
Most super funds publish their investment options and target asset allocations on their websites, making it easy to check where your money is going.
When deciding on an investment strategy, ASIC suggests considering:
✔ Your age – How much time do you have to grow your super?
✔ Your risk profile – Do you prefer a more aggressive or conservative investment approach?
✔ Your timeframe – How soon will you need access to your super?
Getting your investment mix right now can help you build a stronger, more secure retirement—so it’s worth taking the time to check!
3. Check for lost super and consolidate accounts
If you’ve got multiple super accounts, you could be paying multiple sets of fees and insurance premiums—and those costs can really add up, which could significantly impact your balance by the time you retire.
The good news? Consolidating your super has never been easier. With the ATO’s myGov online service, you can quickly merge your super accounts and stop those extra fees from slipping through the cracks—meaning more money in your pocket when it matters most!
Here’s how:
- Log in to your myGov account and select ‘Super’ from the top menu.
- You’ll see a list of your super accounts. If you have more than one, you can submit a transfer request directly through myGov.
And if you’re unsure whether you’ve got lost super, the ATO also offers an automated super search phone line—just call 13 28 65.
As of June 30, 2024, the ATO is holding $17.8 billion in lost super across over 7.1 million accounts. Some of that money might belong to you, your friends, or family—so it’s definitely worth taking a few minutes to check.
Taking the time to regularly check your super can be one of the most important steps in securing your financial future. Whether it’s reviewing fees, ensuring your investments align with your goals, or consolidating multiple accounts to cut unnecessary costs, small actions today can lead to a much larger nest egg when retirement comes around.
Remember, super is a long-term commitment. By being proactive, you can ensure that every dollar of your hard-earned money is working as efficiently as possible for you.
Superannuation doesn’t have to be a mystery. Let us simplify it for you—contact us today to get started!
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The material and contents provided in this publication are general and informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.
