Finalising your holiday to-do list? It could be worthwhile to spend an hour reviewing your super.
The Association of Superannuation Funds of Australia (ASFA) — the peak body for the superannuation industry — is encouraging Australians to spend an hour checking their super this holiday season, which could see them thousands of dollars better off in retirement.
"Jump online these holidays to check your super is working best for you and that your security settings are up to date," ASFA chief executive Mary Delahunty said.
"It takes less than an hour and could make a big difference to your retirement."
How knowledgeable are Australians about their super?
Research by the Commonwealth Bank in July highlighted widespread gaps in Australians’ understanding of their super.
It found 33 per cent of Australians don’t know their super balance, 11 per cent have never checked it, and 31 per cent don't know how their super is invested.
The report also highlights that women and gen Z are less likely to be aware of how their super is invested.
A Finder survey in October revealed that 29 per cent of Australians don't know how their super fund performed over the past 12 months.
What to check on your super account?
ASFA recommends Australians start with the basics by ensuring their contact details are up to date, so they don't miss important communications from their fund.
It also suggests reviewing investment and insurance settings, as you could be missing out on potential savings if you're not in the right investment for your age and risk appetite.
Australians are also encouraged to check how many super accounts they have through their myGov account and, if they have more than one, consider consolidating into their active fund.
A 30-year-old could add as much as $20,000 to their retirement savings in 20 minutes by consolidating three superannuation accounts, including one with higher fees, into a single low-cost fund, according to Delahunty.
"That's one extra fabulous holiday when you stop working, for less time than it takes to hose the deck for Christmas day," she said.
Some people may also be able to boost their retirement savings by maximising concessional contributions, with the cap set at $30,000, including employer contributions, this financial year.
Most Australians happy with their fund's performance
A recent ASFA survey found 79 per cent of super account holders have a positive or very positive level of satisfaction with their fund’s performance.
The survey of 1,500 Australians found 90 per cent believe super plays an important role in ensuring financial well-being in retirement, while nearly 80 per cent trust their fund to make sound financial decisions.
"These results show that Australians think super really is working for them, and also emphasise the benefits of choice in our super system," Delahunty said.
However, satisfaction levels were lower among people from culturally and linguistically diverse backgrounds.
Those who speak a language other than English at home recorded a 69 per cent satisfaction rate, compared with 81 per cent among people who speak only English.
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