Kin’s Money

Ah, that fun time of year. Last week my super statement arrived. I had been waiting for it and dreading it at the same time.

Both the hubby and I are in industry super funds which we find have lower fees and higher growth than retail funds. We’ve both had both, and much prefer the one’s we’re in now.

Still, I was relieved to find a loss for the year of 3.95%. I have heard of some super funds losing 18%. As super is the main retirement vehicle of many Australians, that will have some long term impact in terms of people staying longer in the workforce, and more people relying on pension payments in their retirement.

It pays to read your super statement carefully. These are the things I do when reading through my annual statement:

1. Check the payments into the fund. Sure, it’s compulsary to make payments into your fund, but some employers get slack, or lazy. Make sure your payments are going in.
2. Check the fees deducted. My fees for this year were $60.95, which isn’t too bad in the grand scheme of things. Less than 1% of my balance.
3. Check your insurance coverage. Do you have too much? Or too little? Our funds now offer Income Protection Insurance, but check the details carefully - some only pay for two years.
4. Assess your asset allocation. Are you spooked by the volatility lately? Getting older and not sure the growth/high risk options are right for you anymore? Now is the time to take a closer look. I looked at mine and decided that based on my age and the severe LACK of money in there, that I could probably stand to take on more risk. I note that despite the last year my average return for 10 years has been over 10%.
5. Decide whether you’re happy with your fund. With super choice most people can have their payments made to their choice of super funds. Take a look at the aspects above, and see if your fund is meeting your needs. If not, have a look around for an alternative.

Have you got your super statement yet? Were you happy with your funds performance?

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