Superannuation statements. Boring, right? But if, like many people, you toss your annual
super statement in a drawer or hit delete, you could be depriving yourself of
many thousands of dollars just when you need it.
It’s worth the
small effort to take a closer look at your superannuation statement. If
everything is in order, you’ll get a warm glow from watching your nest egg
grow. Conversely, a quick check of your statement may reveal some of the common
problems that occur with super; and the sooner these are fixed the quicker your
savings can increase.
What to look for
The layouts of
statements vary between super funds, but there is standard information that
must be provided. Some items may appear in summary form, with a detailed
breakdown shown elsewhere.
Here are the key things to look for:
· Contributions or funds in. This will cover employer and personal
contributions, government contributions and rebates, plus any rollovers. If
you’re an employee earning more than $450 per month, your employer should be
paying 9.5% of your ordinary time earnings to your super fund. Payments can be
made either quarterly or monthly. Calculate the contributions shown on your pay
slip are at the right rate and that they match the contributions received by
your super fund.
· Investment earnings. This covers interest and share dividends, along
with any capital growth in the value of your investments. Be aware that
depending on your specific investment mix and the performance of markets, this
figure may sometimes be negative.
· Insurance cover. Your super fund may provide death and/or
disability insurance. If so, check that it is appropriate and adequate for your
needs. Maybe you are paying for insurance cover you don’t need, or perhaps you are
inadequately insured.
· Investment options. This will show what your money is invested in,
and in many cases the performance of each investment. Your investment choices
will be one of the main influences on the ultimate value of your retirement
savings. Professional advice in this area is strongly recommended.
Other things to
check
· Have you made a
binding death benefit nomination? This allows you to choose, within applicable
rules, who your superannuation is paid to upon your death.
· Is your name
and address up to date? Is it possible you have ‘lost super’.
· More than one
statement? Ideally, you should consolidate all your superannuation into one
fund. This will avoid duplication of fees and insurance premiums. Best of all it will make your super much
easier to manage.
Invaluable advice
Super is one
area in life where professional advice can really pay off. If you need help with
understanding investment options, consolidating multiple super funds, finding
lost super, or ensuring you have the right insurance cover, talk to your
financial adviser.
The sooner you
do, the sooner you’ll be on track to growing your super.
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