Lee Nickelson is an Authorised Representative, GWM Adviser Services Limited, Australian Financial Services Licensee
Hands up who knows where their super is invested and what fees they are paying for the administration services they receive? Anyone..? You aren’t alone in the unengaged zone. What is also emerging is that women are less likely than men to regularly engage with their superannuation¹… which is another issue in itself.
Seems crazy doesn’t it.. our superannuation assets have ballooned to $2.3 trillion² yet we aren’t paying attention. Most rental property owners pay attention to the rent they charge (asset performance) and get quotes on repairs/bargain with real estate agents (manage costs) – so how do we start paying attention to our super?
The ‘Compare the Pair’ advertising campaign for industry super has been around for a couple of years now, but what has become interesting is there has never been a better time to compare superannuation funds.
Recent legislative changes to Regulatory Guide 97 have required superannuation funds, industry funds included, to disclose their fees and costs in a more transparent way resulting in a raft of new Product Disclosure Statements being released.
Many of the clients I have worked with since these changes have been surprised to realise their ‘cheap’ industry funds, aren’t the cheapest option out there anymore. But on the flip side, it isn’t all about being in the cheapest fund – especially if it is at the expense of asset performance. Investing in cash because it has low fees is unlikely to be in your best interest long term.
Different assets (cash, term deposits, shares, property) have different performance characteristics, and your superannuation administrator is investing a percentage of your money in each of these assets on your behalf. Make sure you are paying attention to the percentages you have in each asset class as this is one of the main drivers behind investment performance.
So why not log in whilst you are winding down before Christmas and get engaged with your super – check out what fees you are paying and how you are invested. If you aren’t confident reviewing your superannuation yourself, we are here to help.