Recent research shows some interesting insights and a few worrying trends into how Australians view their Superannuation.
The Financial Services Council ING Direct Superannuation Consumer Report shows compelling support for our Super system, with 89% of respondents viewing Super as a means of saving for retirement. Additionally, approximately 72% of respondents were able to say roughly how much they have in their account at the moment. On the other hand, concerning evidence suggests 74% of workers let their employer choose the Fund their Super contributions are paid into (‘default fund’).
Other key findings showed that there is uncertainty over life insurance, with one in four respondents unsure about whether or not they have life cover through their Fund.
48% of respondents were aware they could choose between different investment options and about the same proportion couldn’t state what fees they were being charged by their Super Fund.
The report highlights the fact that many Australians pay little or no attention to their Super, often because the money is unreachable until retirement and thus they don’t see it as something they need to be concerned with yet. However, as Super is likely to be one of your largest assets on retirement, it is actually very worthwhile to spend a bit more time getting “up close” to your Super and ensuring you are aware of your Fund’s details.
As a guide, a worker aged 30 earning a salary of $50,000 annually can accumulate around $324,000 in super savings by age 65 – and that’s just relying solely on employer contributions and assuming average investment returns.
It’s likely that you would have received your annual Super Fund statement in respect of the 2017 financial year. Take a look and review what fees you are paying, if you have life cover through your Fund and what the Fund’s underlying investment strategy is.
Many Australians have their Super in a ‘balanced’ style of Fund with strong exposure to shares. A more conservative, cash-based investment strategy could mean more stable (and lower), returns on your Super over time.
Take an active approach and engage with your Super. To discover more about why Super is such an important investment for your future and how you can maximise its potential, contact Revolution Financial Advisers to make an appointment with us.