When was the last time you really paid attention to your super statement? If the answer is “never” or “a long time ago,” you’re not alone.
Many Australians give their statement a quick glance and move on without much thought. But here’s the thing: your superannuation is real money – your money – and it’s critical for your future. Take a few minutes to review your annual super statement. It can make a significant difference towards a comfortable retirement.
Why it matters
Every September or October, your super fund sends out an Annual Member Statement, either through email or for download via your super account portal. This document is more than just a summary; it’s a snapshot of your financial future. By conducting a yearly review, you can make sure your super fund is working hard for you and aligned with your retirement goals.
Use this simple checklist to guide you through your annual super health check:
Review your Investments
The first thing to check is your investment performance. How did your super investments perform this year? Compare your returns to previous years and the fund’s benchmark. If your super is consistently underperforming, it might be time to consider adjusting your investment strategy or switching to a different fund. Remember, even small improvements in returns can add up to significant gains over the long term.
Check on Fees
Fees eat into your super balance and impact your retirement savings. Super funds charge fees for managing your investments, and these are listed in your statement.
Are you getting value for the fees you’re paying? Compare your fees with other super funds to make sure you’re not paying too much. If the fees seem high, explore other funds that offer similar or better returns for lower costs.
Did you receive your contributions?
Your statement will show how much was contributed to your super over the year, both from your employer and any personal contributions you might have made. Make sure these numbers match what you expect.
If there are any discrepancies, it’s essential to follow up with your employer or your super fund to correct them. Regular contributions are key to building up your retirement nest egg.
Check your Insurance
Many super funds provide default insurance cover, including life insurance, total and permanent disability (TPD), and income protection. Review your insurance to ensure it meets your needs.
Are you over-insured or under-insured? Adjusting your cover can help you avoid unnecessary premiums while ensuring you’re adequately protected.
Is your Super aligned with your goals?
Finally, take a moment to reflect on your retirement goals. Are you planning to retire early?
Do you want to build up a larger super balance for a more comfortable retirement? Your investment strategy should match these goals.
Log into your super portal this week and download your statement. Spend 15 minutes going through the checklist above.
It’s your money, and a little attention now can mean a lot more freedom down the track.
