As the end of the financial year has passed, we will receive our yearly superannuation statements. While most of us will file it away without even a quick look, it’s important to understand many things on your statement, including how your super is performing, the fees you pay, your contributions and your level of insurance.
Here we talk about what you’ll see on the statement, what it means:
Checking that all your personal details are correct is vital to make sure your super is running like clockwork. In particular, providing your TFN to your super fund is important, otherwise you’re likely to be paying a lot more tax on your super, robbing you of extra funds in retirement.
Your super statement will show your recent transaction history with contributions from your employer going in to your account. We can’t stress enough of the importance of looking at the transaction history to make sure contributions are properly going in.
You need to check that you are actually receiving the payments that are being declared on your pay slip. It’s an important statement from the perspective that people can actually see that they are receiving the contributions that they’re supposed to be receiving. If you are making co-contributions on top of the 9.5 per cent super guarantee, make sure they’re going in too.
Returns & Fees
Review the amount of fees that you have paid over the year, which may include investment charges and administrative fees. Low fees don’t always mean that your fund is performing well, so consider returns too. The most important figure is actually the net return to members – this is the money earned by members after the subtraction of fees and charges. Low fees do not always mean strong returns.
Your yearly super statement will show how well your fund has performed over the last year, or several years, in terms of percentage of growth. It will also show you what type of investment profile you have, which you can change based on the amount of risk you want to take with your super.
It’s important to check that your super is growing at an adequate rate, with the end of the year a great time to review where you are and to make sure you’re on track for retirement.
Making extra contributions to help boost your superannuation balance is a great idea. Super guarantee contributions is an important starting point, most people will need to contribute extra to their super to achieve the retirement lifestyle they want. Talk us about your options if you are says.
Beneficiaries & Insurance
Make sure all of your personal details are up to date, including the beneficiaries in the instance of your death. Being able to direct payments to the right person and not have your super proceeds paid into your estate has many advantages.
Included in your superannuation is insurance cover in case you are permanently disabled or pass away suddenly. Review your level of cover and make sure it is adequate when you receive your statement. Typically members have life insurance, total and permanent disability (TPD) and income insurance.
Need advice or assistance? We are only a phone call away.