Gain more on your superannuation

The Australian Securities and Investments Commission (ASIC) recently conducted a review of the superannuation sector. The findings highlighted opportunities for improvement in monitoring investments and communication between super funds, financial advisers, and members. Let’s explore how you can make the most of your superannuation.

Superannuation is crucial for your future financial security. Even if you lead a busy life, taking a little time to understand and optimize your super can significantly impact your retirement lifestyle.

The Impact of 1% More Returns Using Moneysmart’s superannuation calculator, consider this example: A 30-year-old with an average investment return of 7.5% per annum will have over 20% more super at retirement than someone with a 6.5% return. That difference could determine whether you can travel, enjoy social outings, or afford quality aged care.

Investment options

MySuper Accounts: If your employer automatically directs your super contributions to a fund, you likely have a MySuper account. These accounts typically have low fees and a balanced investment strategy designed to grow your savings over your working years.

Choice Super Products: Alternatively, you can actively choose how your super is invested. Financial advisers may recommend specific options based on your circumstances. Remember that small differences in investment returns can accumulate significantly over time.

Know Your Super: Explore your fund’s website, app, or call them to understand your current investments, insurance options, and other features. Compare your fund to others.
Don’t Set and Forget: Regularly review your super’s performance against targets. Consider whether you’re in the best investment option for your goals.
Consult Your Financial Adviser: Discuss your super’s performance, short-term and long-term returns, and potential changes. Be informed about tax implications and insurance. For help on this part, feel free to reach out to us!