Why you shouldn’t ignore your annual superannuation statement

When it comes to the mountain of bills and statements that seem to fill our mailboxes every day, it’s easy to ignore them and toss them aside.

However, experts warn that your annual superannuation statement shouldn’t be one of them.

Rather than toss them in the junk pile, Canstar is encouraging Australians to make a habit of checking their annual statements to ensure they are in good financial shape for retirement.

Although Aussies now hold over $4.3 trillion in superannuation across APRA-regulated and self-managed super funds, a new Canstar.com.au survey of more than 3,000 adults has found one in five Australians check their super only once every few years, or never at all.

Canstar’s data insights director, Sally Tindall says, “Your annual super statement isn’t a piece of mail you want to be filing away unopened. Instead, use it as your yearly reminder to check in on your retirement fund.”

“Superannuation is one of the most significant assets you will ever own, yet many Australians let it run unchecked without a second thought,” Tindall added.

When checking your annual statement, Canstar suggests sticking to the following checklist to understand how your super fund is performing:

1. Check details: Make sure your personal details are correct and your tax file number is recorded.
2. Review contributions. Check your employer has paid you the right amount of super over the year.
3. Assess your returns and fees. Understand how your fund performed over the last year, but also the longer-term returns. Compare this to the top-performing funds. Also, check the fees you’re paying are reasonable.
4. Size up your balance. Check your balance is on track for a comfortable retirement.
5. Assess your investment mix. Make sure it will deliver on your long-term goals but isn’t taking on an excessive amount of risk for your age.
6. Review insurance in super. This may include life, total and permanent disability, and income protection insurance to make sure it suits your needs.
7. Confirm beneficiaries. Review who is the binding or non-binding beneficiary.
8. Consolidate multiple accounts. Consolidating your accounts into one could save on fees and make it easier to track your retirement savings.

If your fund is underperforming, Tindall suggests that Aussies may want to “consider switching to one that’s more likely to deliver you stronger returns. While past performance is never a guarantee of how a fund will perform in the year ahead, it can help guide your decision-making.

“If you’re not sure, seek out personal financial advice. These are big decisions you shouldn’t just glance over, but instead give careful consideration to.”

When it comes to retirement, the last thing you want to do is leave your nest egg to chance. So, the next time your annual super statement lands in your mailbox, don’t let it gather dust — take a few minutes to review it.

Those few minutes could make all the difference in securing the comfortable retirement you’ve worked so hard for.

Read more: Quick ways to help boost your superannuation

IMPORTANT LEGAL INFO This article is of a general nature and FYI only, because it doesn’t take into account your financial or legal situation, objectives or needs. That means it’s not financial product or legal advice and shouldn’t be relied upon as if it is. Before making a financial or legal decision, you should work out if the info is appropriate for your situation and get independent, licensed financial services or legal advice.