With the New Year upon us, now is a good time to get your superannuation into shape.
Figures released in 2018 showed duplicate account fees and insurance premiums had eroded savings by over $2 billion (Productivity Commission); lost superannuation had amounted to $17.5 billion (ATO); and one-third of workers simply weren’t paid what they were entitled to (Industry Super Australia).
Industry Super Australia chief executive, Bernie Dean, said consumers could take a few simple steps in 2019 to help set their superannuation up for the future.
“Most people don’t start thinking about superannuation until they near retirement, but early action could make a huge difference to a nest egg,” Dean said. “Consumers may consider consolidating multiple accounts; claiming lost superannuation; and choosing a fund that has outperformed over the long term.
“They should also check they’re being paid the correct amount, as almost three million workers were short-changed their super in 2016.”
Industry Super Australia, who provide policy, research and advocacy on behalf of 16 not-for-profit industry superannuation funds with around six million members, have four top tips on being super smart by resolving to:
1. Look at the long-term net performance of your fund. How does it stack up? For the average income earner, a two per cent performance gap may be a difference of around $200,000* at retirement.
2. Consider consolidating multiple accounts to avoid duplicate fees and insurance premiums. In 2018, the Productivity Commission identified 10 million unintended multiple superannuation accounts – that’s one-third of ALL super accounts.
3. Check you’re being paid the super you are entitled to. Employers have three months to pay into an employee’s super account, so a wage slip may not reflect actual payment. If your super doesn’t add up, let your fund or the tax office know.
4. If you’ve ever changed jobs, check if any of the lost super held by the tax office is yours. According to them, one account contains a whopping $2.2 million in unclaimed super.