The financial year has finished. September is commonly the month super fund statements will start arriving in your letterbox, and like many working Australians, you might be getting more than one.
Generally, superannuation is the second largest asset outside of the family home.
Your superannuation, no matter how big or small, is an investment and designed to fund your golden years. Do you spend the time reading through and understanding your annual superannuation statement?
The complexity of superannuation makes reading your statement confusing and stressful. Thus, ignoring and discarding the statement always seems easier.
Understanding your statement should be easy and here is what to look for:
Firstly, look at your account balance and the historical movement. The investment return is expressed as a percentage and gives the return on each of your investment options over a stated period, generally 1, 3 and 5 years.
The statement will list administrative and investment fees. The government also taxes employers’ a compulsory 9.5% (before tax) super contributions and earnings by 15%. Reviewing the total amount of fees you have paid will allow you to compare between different superannuation funds.
Your superannuation statement will include a transaction history over the past 12 months, detailing contributions from your employers’ compulsory super guarantee. Make sure you are receiving what you are entitled to receive. If you are salary sacrificing or making co-contributions in addition of the super guarantee, check the accuracy of the deposits to your salary sacrifice agreement.
Superannuation includes insurance cover, typically life insurance, total and permanent disability and income protection. The standard level of cover might not be adequate for your needs. Please talk to our insurance specialists to review the level of cover that is more suitable.
Did you know that your superannuation falls outside of your will? For peace of mind, include in your super fund clear instructions as to whom you wish to inherit your superannuation. This can easily be achieved by completing a valid binding nomination, which lasts three years.
Familiarising yourselves with superannuation now, and creating a plan, could help you live a more comfortable and joyful retirement.
This advice is intended as general advice only, and is not meant to be interpreted as personal advice. It was prepared without taking into account your personal circumstances, objectives or personal situation. Please consider the appropriateness of the advice in light of your own circumstances. Should you wish to discuss further, to see if any of it might apply to you, speak to one of our friendly advisers today.