If you haven't spent a bit of time understanding your super, it might be time to sort it out.
According to CEO and co-founder of Zuper Jessica Ellerm, you could be making four mistakes with your super.
1. You have multiple accounts
40 per cent of Australians have more than one account. Which means you’re likely to be paying multiple sets of fees for super and multiple sets of fees for insurance policies. For young Australians, ASFA estimates that could be putting them out of pocket $300 per year per extra account. It’s even worse if you’re older, because fees are often a percentage of your balance, and insurance premiums get more expensive as you age.
2. You've invested in cash only
If you’re young, nearly every expert and advisor will tell you not to have your super invested in cash only. Unfortunately super system quirks can happen - like dead people being charged fees or you’re charged for multiple life insurance policies you didn’t know you had - and left unattended, could lose you thousands of dollars in potential returns over your life.
What to do: Log-in and download your statement. It should tell you how the money in your fund is being invested. If it doesn’t look right, get a coffee, settle in and call your fund and ask them to explain. That’s what you pay them for after all!
3. You don't know what your money is supporting
Love tobacco, controversial weapons, cluster bombs and nukes? Yeah, we didn’t think so. Only 28 of 53 super funds surveyed have removed tobacco entirely, meaning your dollars are very likely heading that way. If you’d rather not have your hard earned dollars fund cancer stick production, and it’s estimated 7 million related deaths per year worldwide, you might want to consider moving funds.
What to do: Visit your fund’s website to find out if they’re in or out, or drop them an email to ask what they’re doing about it
4. You don't support things you care about
You don’t need an expensive self-managed super fund (SMSF) and tons of money and time to invest your super in things you’re passionate about. Many super funds now let you put a portion of your super into investments picked by you. If you’re not comfortable with picking stocks directly, a few funds now offer options that bundle similar investments together in health, technology and renewables.
What to do: Ask your fund what the options are, or check out some of the new providers like Zuper. It could be one of the best investments of your time that you ever make.
For more information visit www.zuper.com.au