Australians are being urged to simply check in with their superannuation over the break, as it could add more than $200,000 to their retirement piggy bank.
Ahead of the summer break, the Association of Superannuation Funds of Australia (ASFA) is urging people to do a quick health check on their account, warning many Australians could be leaving hundreds of thousands on the table.
In the example of a 30-year-old making $80,000 a year and having a starting super balance of $50,000, the person could be significantly better off if they had the right investment option for their age and risk appetite.
If this person is in a capital stable investment option earning 4.5 per cent a year and they choose to move to a balanced investment option with a 6.5 per cent average return they could be over $200,000 better off at age 67.
However, ASFA warned before making any changes Australians should consult an industry professional.
ASFA chief executive Mary Delahunty said another simple trick for any young Australian is making sure they only have one account.
“For a 30-year-old, even the simple act of rolling three superannuation accounts, including one with higher fees, into one low-fee account could result in an extra $20,000 in retirement and takes less than 20 minutes,” Ms Delahunty said.
“That’s one extra fabulous holiday when you stop working for less time that it takes to hose the deck for Christmas Day.”
As part of the holiday check in, ASFA also calls on Australians to make sure they have their beneficiary up to date and if they can, find ways to maximise their superannuation contributions in the new year.
Ms Delahunty also warned Australians should keep their passwords up to date.
“Jump online these holidays to check your super is working best for you and that your security settings are up to date. It takes less than an hour and could make a big difference to your retirement,” Ms Delahunty said.
Aussies trust super funds more than banks
The tips come as new research, conducted by ASFA, suggests Australians are overwhelmingly happy with the performance of their superannuation funds, and trust their fund more than their bank.
According to the results nearly four in five of the 1500 people surveyed say they are happy with their superannuation performance over the last 12 months.
Typical growth super products delivered a 10.5 per cent return in FY24-25, with an average of 7.1 per cent over the past decade.
The survey also found more than 90 percent agreed superannuation plays an important role in ensuring financial wellbeing in retirement and nearly 80 percent of people trust their fund to make sound financial decisions on their behalf.
“It’s heartening to see Australians place such trust in the super system and their super funds,” Ms Delahunty said.
“We all have a role in guarding that trust. The super sector has had a great year for financial returns and has also made meaningful improvements to the service members receive.”
https://thewest.com.au/business/how-a-simple-change-in-your-superannuation-settings-could-make-you-200000-richer-c-21079604
