Since you got your first job, you’ve been contributing money to a superannuation fund. Like most people, you probably don’t fully understood where it is going and how it is working for you. You might even have multiple super accounts that you have forgotten about (and each one of these are charging you fees!) It’s a really good idea to get on top of your super accounts, to understand how they are working for you and what fees you are paying.
What to look out for and compare?
- Fees: Each account attracts a service fee so ensure that you check to see what that is.
- Investment Options: Ensure that the options that you have selected suit your needs and comfort with risk. For example, do you want to have a high risk portfolio which will yield more results long-term due to you working for the next 30 years?
- Extra benefits: If you pay extra contributions into the fund, how do they work for you?
- Performance: You can review Super Funds to see how they have performed over the last five years which will give you a balanced view of the market. Make sure you look at a range of funds not the one just offering the lowest rate.
- Insurance: Check what insurances you are covered for? Most funds have some insurance cover included, however, will this cover you?
- Service and statements: Contact your super fund for updates and reports and what costs are to maintain your super fund. If you are not sure of something on your annual statement, ring and ask!
- Note: Make sure you provide you Tax File Number (TFN) to your super fund when you join. This ensures that you are taxed at a special low rate and you are less likely to have your account lost into the super ether.
Did you know?
You can also pay for your personal insurances (Life Insurance, TPD, Income Protection) out of your Super account ensuring that you and your family are covered.
Tracking down your lost super
The Australian Tax Office (ATO) offers a free service to track down lost super accounts. All you need to do is click here to go to the ATO website, enter your Tax File Number and you can find your lost super… perhaps from that part-time job you had at uni and lost the details when you moved or when you got married. For more advice, contact your Financial Planner who can assist you in finding and rolling over your super funds.