For many Australians, superannuation is one of the biggest assets they will ever own. Yet, despite its importance, it’s also something many people rarely think about.
Your employer makes contributions, your balance gradually changes, and retirement can feel a long way off. So, it’s easy to assume everything is ticking along as it should.
But have you ever stopped to ask whether your super fund is actually working as hard as it could for you?
You don’t need to be an investment expert to find out. A few simple checks can help you understand where your super is invested, what you’re paying in fees, and whether your current arrangements still suit your needs.
Are your investment options right for you?
Not all super investments are the same.
Depending on your fund, you might be invested in a balanced option, a growth option, a conservative option, or a portfolio that you’ve selected yourself.
Each comes with different levels of investment risk and potential returns.
For example, a growth-oriented investment option will generally hold a higher proportion of shares and other growth assets. This can provide greater long-term growth potential, but it can also experience larger falls when markets are struggling.
A more conservative option may experience smaller fluctuations in some market conditions, but it may also deliver lower returns over the long term.
The right option depends on factors such as your age, how long you have until retirement, your financial goals, your comfort with risk and your broader financial circumstances.
The key question is: does your investment option still suit you?
If you selected your super investment option years ago and haven't reviewed it since, it may be worth checking whether it still aligns with your plans.
What are you paying in fees?
Fees might seem small when you look at them individually, but they can make a meaningful difference to your super balance over time.
Super funds can charge administration fees, investment fees and other costs. Some members may also pay insurance premiums through their super.
Imagine two otherwise identical investments earning the same returns before fees. If one consistently charges higher fees, less money remains invested and compounding over time.
That doesn't automatically mean the cheapest super fund is the best option. Investment performance, insurance arrangements, services and other features also matter.
However, understanding what you pay — and what you receive in return — is an important part of making an informed decision.
A quick tip: Check your latest super statement or log in to your fund's website and look for the fees and costs section. You may be surprised by what you find.
How has your super performed?
Investment performance is another important piece of the puzzle, but it's easy to misinterpret.
Seeing that your super balance has increased is encouraging. However, your balance can rise because of employer contributions, personal contributions and investment earnings. These are different things.
Likewise, a year of strong investment returns doesn't necessarily mean your fund is the best choice for you.
When comparing super funds or investment options, consider:
- Longer-term performance: Look at several periods, such as five and ten years where available, rather than relying on one good year.
- Comparable investment options: Compare options with similar investment objectives and risk levels.
- Fees and costs: Consider returns after investment costs and relevant fees.
- Market conditions: Remember that investment markets rise and fall, and past performance doesn't guarantee future results.
It's also worth remembering that different funds may report returns over different periods or use different methods. Make sure you're comparing like with like.
The goal isn't to find the fund that performed best last year. It's to understand whether your current investment approach remains appropriate for your long-term goals.
Are you paying for insurance you still need?
Many super funds offer insurance, such as life insurance, total and permanent disability (TPD) cover and income protection.
For some Australians, holding insurance through super can be a convenient and cost-effective way to protect themselves and their families.
However, your needs can change over time.
You might have changed jobs, paid down your mortgage, started a family or taken out additional insurance elsewhere. Alternatively, you might have less cover than you need.
It's worth checking:
- What insurance cover you currently have.
- How much you're paying in premiums.
- Whether the cover is appropriate for your circumstances.
- Whether the policy has limitations or exclusions that matter to you.
Be careful about cancelling existing cover before checking the implications. Obtaining replacement insurance can be more difficult or expensive, particularly if your health or circumstances have changed.
The aim is to make sure your insurance arrangements are appropriate — not simply to remove a cost.
Do you have multiple super accounts?
If you've changed jobs a few times throughout your career, there's a chance you could have more than one super account.
Each additional account may mean extra fees, and having multiple accounts can make it harder to keep track of your investments and insurance.
You can use the Australian Taxation Office services available through myGov to look for super accounts and check whether you have any lost or unclaimed super.
Consolidating accounts may simplify your finances and reduce costs, but it's not always the right answer.
Before combining super, check whether you would lose valuable insurance cover, pay exit fees or give up other benefits. Make sure the receiving fund is suitable, too.
Sometimes keeping more than one account is appropriate. The important thing is to understand why you have them and whether they serve a purpose.
Are you contributing enough?
Your super balance isn't determined solely by which fund you use. How much goes into super, how long it stays invested and the returns it earns can all make a difference.
Your employer generally makes compulsory super guarantee contributions, but you may also be able to make additional contributions depending on your circumstances.
These could include salary sacrifice, personal deductible contributions or other eligible contribution strategies.
Additional contributions may help build your retirement savings and, in some circumstances, provide tax benefits. However, contribution caps, eligibility rules, tax implications and access restrictions need to be considered.
Money contributed to super is generally preserved until you meet a condition of release, so it's important to balance your retirement savings with your current needs, mortgage commitments and other financial goals.
Even small, regular contributions can add up over time. The right approach will depend on your income, cash flow, tax position and how close you are to retirement.
When did you last review your super?
Superannuation isn't something you necessarily need to check every week. Constantly reacting to market movements can be counterproductive.
However, reviewing your arrangements periodically — and when your circumstances change — can help you stay on track.
A review might be worthwhile if you've:
- Changed jobs or had a significant change in income.
- Bought a home or started a family.
- Experienced a major change in your financial circumstances.
- Approached retirement or changed your retirement plans.
- Not reviewed your investment options, fees or insurance for several years.
You don't need to make changes simply for the sake of it. Sometimes a review confirms that your existing arrangements are doing exactly what they should.
The value lies in knowing that your super is aligned with your goals, rather than simply hoping it is.
Your super check-up: where to start
If you're not sure where to begin, set aside 15–20 minutes and work through this simple checklist:
- Find your latest super statement.
- Check your current balance and investment option.
- Review the fees and costs you're paying.
- Look at longer-term investment performance.
- Check your insurance cover and premiums.
- Look for any other super accounts you may hold.
- Consider whether your contributions are on track for your retirement goals.
You don't have to tackle everything at once. Even understanding your current investment option and fees is a useful starting point.
Is your super working hard enough for you?
Superannuation is a long-term investment, and small differences in fees, investment choices and contributions can have a meaningful impact over time.
But there's no single super fund or investment option that's right for everyone. The best approach depends on your goals, financial circumstances, investment timeframe and attitude towards risk.
The good news is that you don't need to understand every detail of the super system to take control. Start by understanding what you have, what it costs and whether it still suits the life you're working towards.
At Elevate Financial Planning, we believe good financial planning starts with clarity. Understanding your super is one part of building a financial future that works for you.
Want a clearer picture of your financial future?
If you'd like help understanding your super, reviewing your options or working out how your retirement savings fit into your broader financial plan, get in touch with Elevate Financial Planning.
Let's make your money work towards what matters to you.
Let's make your money work for you.
For personalised
financial services and advice, speak with your
Financial Advisor today at
Elevate Financial Planning
- Arlan Davine (Elevate Financial Planning)
