Review your super to avoid common pitfalls and ensure you are getting the most out of your fund.
Reviewing your superfund is a simple but important way to stay on top of your retirement savings. It’s also a great step to take when you’re thinking of changing or consolidating super funds.
Here are 6 steps to take when reviewing your super.
6 Steps To Review Your Super Fund
1. Check your personal details and beneficiaries
Make sure all your contact details are up to date so your savings don’t end up in lost super. Check that you have nominated a beneficiary/s so that you are in control of who receives your superannuation in the event of death.
2. Review employer contributions
Check your employer contributions against your payslips to ensure your employer is contributing the correct amount. Employers need to make contributions into your account on a quarterly basis however some may choose to make contributions more regular i.e. monthly. If you have any concerns regarding your contribution amounts contact your super fund and your employer for clarification.
3. Assess fees
Every super fund charges different fees. It’s important that you check these fees to ensure that you are in a fund that best suits your needs. Fees that you may be paying include, administration fees, member fees, investment fees. You need to make sure you are you getting what you pay for. It’s also worth comparing how your fees compare to similar investment options within other funds.
4. Check your Tax File Number (TFN)
Make sure you have supplied your super fund with the correct TFN. You’d be surprised how easily mistakes can be made. If you have not supplied your TFN or if an invalid TFN has been input you will be paying a higher rate of tax than the superannuation 15% tax rate. If this is the case, update this information promptly to avoid extra tax.
5. Do you need insurance?
Many super funds offer insurance such as life insurance, total permanent disability insurance (tpd) and income protection. Getting insurance through your super fund can be both cost effective and offer peace of mind. Check to see if your insurance is best tailored for you. You want to make sure you have the correct amount of insurance for your situation. You don’t want to be underinsured nor do you want to be paying for insurance you don’t need.
6. Consider investment options
Your statement will provide information on your current investment options and how your money is being invested. It’s good to review these options to ensure it’s in the most suitable investment option for you. Most super funds have a range of different options available. These can include conservative to aggressive investment options. Make sure you have selected an option that is both inline with your risk tolerance and goals for retirement.
Connect with one of our financial experts to learn more about reviewing your super
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