Become a Super Hero
This is the time of year where we all receive the Superannuation statements for the Financial Year. Don’t just throw this paperwork through the shredder – and definitely do not just toss into the nearest bin, information on your Super Statement may be used by the bad guys for evil.
Now is the perfect time to take action with your Super. So which Super Hero are you?
While you may look fabulous in a crown and can lasso any obstacle that comes in your way, Superannuation often leaves you wondering what all the fuss is about.
In a nutshell, Superannuation is the savings account for your future. The Superannuation Guarantee Charge is a compulsory payment made by employers and calculated on your income, generally at a base hourly rate on ordinary hours, i.e. not on overtime hours.
Use your Superannuation statement to make sure that the extra line that should be appearing on your payslip is actually being paid into your account. This amount should be paid at least quarterly in to your nominated Superannuation fund.
Now this one may get me into a bit of trouble with the other half, so I shall tread carefully here…
Batman as a Super Hero represents the big wigs of the Superannuation world, the bright and shiny Super funds that give you all the gadgets, bells and whistles. When you read your Superannuation statements take note of the extra charges that may appear on your account and really consider if these are helping you. Be sure to know exactly what each gadget is and if you are getting the best deal.
The Royal Commission has demonstrated that the Big Wigs are not shy at adding costly terms and conditions to your account, even just a couple of dollars each month can add up to millions each year for their customer base. Another perspective if you need extra power to sort your super, each dollar in your super has the potential to grow to ten or even one hundred dollars over your lifetime – depending on your age and the compounding interest rate – but definitely worth making sure you are getting what you are paying for, and actually need what you are paying for.
While the Flash may be quick as a …well, flash… even this Super hero cannot outrun the roller coaster of the share market. When looking at your Super statement, you will see how much your Super fund investments have grown throughout the year. You may be tempted to switch to a higher performing fund, but slow down before running away with your Superannuation.
Your Superannuation fund decisions should not be based on performance alone. Costs associated with exiting your fund and transferring to another may ZAP any potential profits from changing to a higher performing fund. Be sure to check how these returns have been achieved. You might be better sleeping at night knowing that your super is invested in moderate investments rather than chasing higher returns based on past performance.
This in my view is the ultimate Super hero, coming from a planet where his talents are a norm, but on Earth he spends most of his time just fitting in with everyone else. Living like everyone else, and occasionally flexing his Super muscles to check that there is not much rocking his Super world, and doing what is needed to bring things back to normal.
So what would Superman do? Read through his Super statement to ensure that everything is as it should be. Performance is on par with the rest of the industry, ongoing fees are low and reasonable, no extra charges are added to his account, and his employer is paying his Superannuation regularly.
Regularly checking on his Super he is able to continue at his day job knowing that his Super Power is working for him to have a comfortable future.
In a nutshell…
Become your own Super Hero and take the time to read through your Super statement.
Check out your balance, but also take a closer look at the other information.
Superannuation is the bank account for your future. Embrace your Super powers and take the time to read your Superannuation statement to ensure that all is well in Metropolis. Here is a quick list of what to look for:
- Regular contributions paid into your account
- Low fees that are ALL explained, know what you are paying for
- Returns are in line with performance for the industry
- Other associated costs on your account, such as Insurance, are fully known to you and the costs are reasonable for the coverage
– Karen Patterson