3 Simple Checks to Make Sure Your Super is Working for You

How often do you check on your super? It’s probably not all that often, right? But here's why it’s a good idea to pay more attention to your super: even small changes in your super’s performance or fees can have a big impact on your retirement savings.

If you’re paying just an extra 0.5% in annual fees (say, 1.5% instead of 1%), it could end up costing you around 12% of your balance by the time you retire. That’s roughly $100,000!

So, how can you make sure your super is working as hard as possible for you?

Here are three simple steps to get started:

1. Review Your Super Fund’s Fees

Super fees can be tricky to understand. Funds may charge administration fees, investment fees, insurance premiums, and other costs. To make things even more confusing, these fees aren’t always presented in the same way, so it can be tough to know exactly what you’re paying for.

The easiest place to start is with your annual super statement. This should include details about both your fees and your fund’s performance. You can usually access your statement online through your super fund’s website or portal.

Once you have this info, compare your fund’s fees with other options. Just make sure you’re comparing similar funds (for example, compare funds that offer a balanced investment option to other balanced options).

Also, keep in mind that fees should always be considered alongside performance. For example, a fund with slightly higher fees might still be worth it if it offers better returns over time.

You can use the ATO’s YourSuper comparison tool to compare MySuper products, but it’s worth noting that it doesn’t include all super options. You can also check out other comparison websites, but remember they might not list every available option either.

And remember: when you’re looking at fees and performance, think long-term. ASIC’s Moneysmart suggests looking at the past five years at a minimum.

2. Check How Your Super is Invested

Aside from fees, it's also important to look at how your super is invested. Is your money working hard in a mix of assets that’s right for you?

Traditionally, many Australians have been defaulted into a “balanced” investment option, which typically splits money between growth assets (like shares and property) and defensive assets (like bonds and cash).

If you're younger, with decades left before retirement, you might be open to taking on more risk by investing in a higher-growth, more aggressive option. This could give you better returns over the long haul. But, if you're closer to retirement, you might want to play it safer and reduce the risk of losing money in market downturns.

Most super funds have details on their investment options and asset allocations on their websites. When considering your investment options, ask yourself:

• How old am I?
• How comfortable am I with risk?
• How many years until I can access my super?

3. Check for Lost Super and Consolidate Accounts

Do you have more than one super account? If so, you might be paying multiple sets of fees and insurance premiums, which could seriously hurt your balance over time.

The good news is that it’s easy to consolidate your super funds. You can do this through the ATO’s online service via myGov.

Once you’re logged into myGov, head to ‘Super’ in the top menu. From there, you should see a list of all your super accounts. If you have more than one, you can easily transfer your balances into a single account through myGov.

The ATO also has a phone line for lost super. Just call 13 28 65 for help finding any unclaimed super that may be yours.

As of June 30, 2024, the ATO held nearly $17.8 billion in lost super from more than 7 million accounts. Some of that could be yours—or belong to your friends or family—so it's worth taking a few minutes to check.

By staying on top of your super, you can make sure it’s working as hard as it should for your retirement. It’s all about being proactive now so you can reap the benefits later.

Chris Tolevsky has over 30 years experience in the medical and allied health fields.  He provides expert guidance on tax strategies, building and protecting wealth . If you’re interested in discussing how we can help you please book a complimentary consultation. 

Disclaimer: This article contains general information only . It is not designed to be a substitute for professional advice and does not take into account your individual circumstances, so please check with us before implementing this strategy to make sure it is suitable.