Hunting after your super

According to a recent report by the Australian Taxation Workplace (ATO), Aussie workers are nonetheless wasting lots of cash on the costs attached to duplicate superannuation accounts, with an estimated 45% of workers getting far more than one particular super account.  CANSTAR asked business funds giant AustralianSuper for some thoughts on why we finish up with duplicate accounts and some issues to take into account when picking a super fund.

On why

“The job market is significantly more fluid than it utilised to be, which means individuals alter employers much more frequently,” mentioned AustralianSuper spokesperson, Dean Felton. “Unless they ask their new employer to spend their super into their existing fund, their cash will automatically go into the employer’s default fund. So the employee ends up with a new super account every single time they modify jobs. That signifies they’re paying charges for every single account, which eats into their total balance.”

For the vast majority of workers there is no want for this duplication, thanks to decision of fund legislation, which has been in existence for almost a decade. If you have a lot more than one particular super account, it is critical to consolidate them so you pay only one particular set of fees.

“That’s less complicated than it sounds,” adds Mr Felton.  “Your super fund will aid you, or you can visit the MyGov website, and do it oneself.”

1 challenge for all super funds is to actively engage with their members those just starting out in the workforce as well as these who are closer to retirement. So how does AustralianSuper get its members engaged?

“Super is 1 of those factors most folks do not believe too much about until they get closer to retirement,” admits Mr Felton. “But at AustralianSuper we work difficult to make certain our members know how to make the most of their super. Factors like combining a number of super accounts into one to avoid unnecessary charges and creating extra voluntary contributions over and above what their employer puts in.  For instance – a 25 year old worker who begins placing in just an added $ 50 a month will end up with about $ 175,000 a lot more in their super payout at retirement.

“We also hold in touch with our members by holding member briefings each year, by way of social media platforms like Twitter and Facebook, and through community events like the AustralianSuper Corporate Triathlon Series, and our sponsorship of the Young Achievers Profession Kick Commence Award.”

Factors to verify when joining a fund

For these workers who do not just join the default employer fund when they begin a new job – and hopefully that is a proportion that will continue to increase more than time – what are some of the functions that need to be on their superfund purchasing list?  According to AustralianSuper, investment functionality over time need to be an crucial factor.

“People must shop around to make positive they’re investing their money wisely. They need to certainly appear for a fund with low costs, but the most important aspect of any super fund is its investment overall performance more than time,” said Mr Felton. “For instance, AustralianSuper’s Balanced Fund has returned on average much better than 10% each and every year to members more than the past 5 years.

“As nicely, people need to think about the level of life, disability and income protection insurance coverage their fund gives, no matter whether that is suitable for them, or whether or not they want far more.  And of course, a lot of folks appreciate the safety of understanding their income is invested with a quite large fund like AustralianSuper, which has 2 million members and manages far more than $ 80 billion of members’ cash.”

Put seeking right after your retirement nest egg on your “to do” list this year – preferably this month. Check out CANSTAR’S Superannuation Star Ratings report here and, if you are one particular of the 45% with much more than 1 account, read much more about how to locate lost super here.  here.

Hunting after your super