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Super smart; top superannuation tips for 2019

Super smart; top superannuation tips for 2019

The new year can bring with it a lot of positive new changes. Most of us are guilty of ignoring our superannuation, but this this year, why not include a super health check in your resolutions?

According to Industry Super Australia, the latest figures show duplicate account fees and insurance premiums have eaten into our savings by over $2 billion, lost superannuation had amounts to $17.5 billion, and one third of workers simply haven’t been paid what they are entitled to. 

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.   

“Consumers may consider consolidating multiple accounts; claiming lost superannuation; and choosing a fund that has out-performed 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,” Mr Dean said.

Whip your super into shape with these tips from Industry Super Australia:

  1. Look at the long-term net performance of your fund. How does it stack up? For the average income earner a 2 per cent performance gap may be a difference of around $200,000* at retirement.
  1. 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.
  1. 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.
  1. 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.

*ASIC Money Smart calculator – start age 27, retire age 67, income $80,000 starting balance zero. Balance with investment returns of 4.5 per cent = $442,402. Balance with investment returns of 6.5 per cent = $663,270. Difference= $220,868 (Current dollars CPI deflated).

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This article was reviewed by Property & Personal Finance Writer Nick Bendel before it was published as part of RateCity's Fact Check process.

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