How to put the Super back into your Super Fund

Please note the following article is general advice only and may not reflect your current financial situation. Please refer to the Disclaimer on our website for more information –

If you have ever wanted a good reason to be more proactive about managing your super, here it is…

Long gone are the days of saving your money under the mattress for your retirement, but what is a better option? Statistics show that more than six million Aussies would have been better doing the old mattress trick rather than opting for their employers’ default superannuation fund over the last five financial years1.

Shocked?! But it does not have to be all doom and gloom, there are some super funds performing well, it is all about the right selection for the right person.

Did you know, thanks to the global financial crisis, fees and taxes the dollars invested in a typical employer default fund went backwards? Recent research by SelectingSuper, part of the Rainmaker research group, estimates that of the 83 employer default super funds available over the five year period, a staggering 51 delivered negative annual returns for members1.

Let’s crunch the numbers:

$10,000 invested into the worst fund a decade ago would be worth $12,800 today.  However the same amount invested in a more appropriate, higher performing fund would be worth $19,100. That is a potential $6,300 growth on your investment just for being invested in a more appropriate fund1!

Is it now the norm for Australian’s to be complacent about their superannuation? Is that why we tend not to question poor returns and underperformance? How could we be making the most of our superannuation dollars?

All very good questions and ones we should all reflect on from time to time.

Let’s be pro-active Australia!

We need to start thinking about superannuation more proactively and in the context of a future savings plan. If you elect to be put in to your employer’s default super fund you may not be in the most appropriate fund for your hard earned superannuation payments. If you take an active approach and seek the advice of a qualified financial adviser who can discuss and compare different types of superannuation funds available to you, you have the opportunity to select the option that is right for you.

Being in control of this choice could make a significant difference to the amount of superannuation you have at retirement age – and no one wants to reach your retirement age only to realise there is not enough money to retire on!

For some professional guidance on strategies you could consider to put the super back in to your super fund, be proactive and call one our financial advisers today. We would love to hear from you!

1. Source: “Workers’ funds are not so super” by Jessica Irvine on 8th October 2012

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