Every year, many Australians receive their superannuation annual statements and leave them unread. That silence could be very costly in the long run.
Recent media coverage warns that neglecting your super — even in small ways — may erode tens or even hundreds of thousands of dollars from your retirement savings.
What’s the risk?
- Ignoring your annual statement
Many people never actually open or review the statement their super fund sends. This means missing errors, unnoticed fees, or underperformance.
- Paying too much in fees across multiple accounts
It’s surprisingly common to have more than one super account. Each account may charge fees, which cumulatively erode your balance.
- Sticking with a low-performing fund or default investment option
Even a 1% underperformance over decades can translate to significant differences in final balances. Many are still invested in the default option and don’t revisit their allocation as their needs change.
- Switching to cash after market drops (“locking in losses”)
It’s a natural instinct when markets are volatile, but shifting funds to cash after a fall can mean missing out on the rebound.
- Delaying extra contributions
Relying only on employer contributions may not get you to the retirement you hope for. Small voluntary or salary-sacrificed contributions can make a meaningful difference.
- Failing to act promptly on notices or changes
If your super fund sends notices about your investment options, fees, or insurance, delaying review or action can lead to negative consequences.
- Switching funds carelessly (risking tax or admin issues)
If you make a personal, tax-deductible contribution, then immediately roll over to another fund before your deduction is confirmed, you may lose eligibility for that tax deduction.
Why this matters
Over a working life, super is often one of your largest financial assets. These kinds of oversights don’t just cost a few dollars — they can mean tens or hundreds of thousands in lost value. Also, super funds and regulators are increasingly scrutinizing fund practices, so more diligence is required than ever.
What you should do now
- Open your most recent super statement.
- Check the fees being charged, investment return performance, and whether all expected contributions have arrived.
- Find out whether you have multiple super accounts; if so, consider consolidating them.
- Review your investment option and see whether it’s still aligned with your goals.
- Make (or continue) voluntary contributions if your budget allows.
- Before rolling over or switching funds, confirm any deduction claims or tax-related issues with your fund first.
If anything seems off, ask questions
How AAG can help you
At AAG, we view this as part of our role to help you protect and grow your wealth for retirement. Here’s what we offer:
- A super review service to audit your current fund: fees, performance, contribution tracking, and suitability
- Help with consolidating multiple super accounts
- Guidance on optimal investment mix based on your stage of life, goals and risk tolerance
- Advice on salary sacrifice strategies, extra contributions, and tax implications
- Assistance with fund switching or rollovers, ensuring you don’t fall into common traps
- Ongoing monitoring and reviews to ensure your super remains on track
If you’d like us to review your super setup or conduct a fund review for you or your team, please don’t hesitate to get in touch with us. We’d be happy to help ensure that your super is working as hard as it can for you.
Further reading relating to optimising your Super:
