Employees are being encouraged to use the summer holidays downtime to better engage with their super.
New research has detailed that those who know their exact retirement balances are more likely to state they are in an above-average-performing super fund.
According to Industry Super Australia (ISA), just one in four Australians who hold superannuation (26 per cent) know their exact balance — and regularly monitor it for its performance.
This same group is reportedly more likely to also have a higher balance and consider themselves to be in “the best-performing funds”.
With the research showing that more engaged members are happier with the performance of their superannuation, Industry Super Australia has offered a number of steps that individuals can take to ensure they are getting the most out of their retirement savings, both now and in the future.
These are outlined below:
- Ensure you are getting all your entitlements
According to Industry Super Australia, unpaid superannuation impacts 3 million workers a year — and costs these workers a total of $5 billion.
- Consolidate your super funds
If you have more than one superannuation account, you are missing out. This summer, consolidate your super funds into one account. The Australian Taxation Office can also help you to find lost or unpaid super.
- Check your fund
Industry Super encourages everyone to check to see whether they are with a top-performing super fund, citing that “investment returns after fees are the most important metric in measuring performance”.
According to ISA research, “being stuck to a dud super fund potentially costs up to $225,000 at retirement”.
- Make extra contributions
For a 30-year-old on average wages, salary sacrificing just $20 a week into super will see that individual better off by $67,000 at retirement — as well as see them make a tax saving right now.
