With strong investment markets driven by the tech sector, growing consumer spending, and easing inflation, super funds saw impressive returns last financial year. As a result, many people will be eager to review their annual super fund statement.
But understanding your super statement can be tricky, especially with unfamiliar figures and terms. Here’s a simplified 10-point checklist to help you make sense of it and ensure your retirement plan stays on track.
1. Verify Your Personal Details
Check that your personal details are accurate, including your email and postal address. Ensure your super fund has your Tax File Number (TFN), as this can prevent extra tax charges and allow you to make personal contributions.
Super Tip: Keep all super statements in one place to track the growth of your retirement savings over time.
2. Review Your Account Balance
Look at the opening and closing balance to see how your account performed during the financial year. Your account balance is made up of:
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- Preserved: Withdrawable once a condition of release is met.
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- Restricted Non-Preserved: Withdrawable upon leaving your employer or meeting a release condition (usually applies to pre-1999 contributions).
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- Unrestricted Non-Preserved: Withdrawable anytime, but may incur taxes.
3. Examine Your Fees
Check the summary of fees deducted from your account and investments. These include:
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- Administration Fees: Fixed or percentage-based costs.
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- Insurance Premiums: Charges for insurance cover within super.
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- Investment Switching Fees: For changing your investment options.
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- Adviser Service Fees: If you have a linked financial adviser.
Remember that your investment returns are shown after fees have been deducted. Compare your fees with other super funds to ensure you’re not paying too much.
4. Evaluate Your Insurance
Check if you have insurance through your super, which may include death, permanent disability, and income protection coverage. Assess whether your insurance coverage is still adequate for your needs. If you already have insurance outside of super, consider consolidating to save on premiums.
Pro Tip: Adjust your insurance as your circumstances change (e.g., new baby or separation).
5. Check Your Investment Returns
See how your investment option performed compared to its benchmark. Long-term returns are what matter most, so don’t worry too much about one bad year if your fund performs well over five or ten years.
6. Review Your Investment Option
Ensure the investment option listed in your statement (e.g., high growth, balanced, conservative) aligns with your risk profile. Younger members can generally afford more growth assets, while those closer to retirement might prefer a more defensive approach.
7. Check Contributions and Transactions
Review the list of contributions and transactions in your account. Make sure your employer’s Superannuation Guarantee (SG) contributions are listed, as well as any personal contributions.
If something is missing, contact your employer or HR immediately. Remember, pending law changes will require employers to make super contributions with each payday by 2026.
8. Confirm Your Beneficiaries
Review and update the beneficiaries listed to receive your super and any insurance if you pass away. Check if your beneficiary nomination is binding, and note when it expires.
Tip: Consider making a binding nomination for more certainty about where your super will go.
9. Assess Your Retirement Plans
Look at the retirement projection on your statement, which estimates your likely balance at retirement and potential income. Consider if your current contributions will help you meet your retirement goals, or if you need to boost them.
10. Evaluate Your Overall Satisfaction
Think about your satisfaction with your super fund. Do the investment options and insurance meet your needs? Is the customer service and education support adequate? If you have multiple super accounts, consider consolidating them for convenience—but be sure to compare the insurance cover before making any changes.
By following these 10 steps, you can better understand your super fund statement and ensure your retirement savings are on track.
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Author Profile: Jeffrey Liu, JP, is the founder and principal adviser of Hippo Insurance (aka: Hippo Wealth), with a deep expertise in wealth protection. His extensive experience includes roles in the wealth management divisions of Westpac, ANZ, and a local multi-family office. As the host of “Riches Talk,” a podcast dedicated to cultivating personal and business growth, Jeffrey has established himself as a thought leader in developing life riches. His insights have been featured on SBS, The Australian, and Channel 7. Notably, he was a semi-finalist on Australia’s Got Talent in 2010. Learn more at http://www.hippoinsurance.com.au