As part of my role, I often speak with members about their superannuation. While each person is different, many tend to share the same sentiment about Super. Generally, they find it is not a priority and/or too complicated. They then go on to share that when someone else mentions Super they have a sudden bout of guilt thinking, “I should really look into that”.
My response to these members is always the same, “actually you shouldn’t be too worried about your Super”. This often surprises people. “Why would a Super person say don’t worry about your superannuation? Super funds are constantly advertising and my fund regularly contacts me with updates and information”.
I go on to explain that once you have completed a simple review of your Super fund you can often leave it to grow, at least for a couple of years.
The obvious follow-up question is, “What should I be checking when reviewing my Super?”
The remainder of this article is devoted to outlining the three main things you should review with your Super fund to ensure that you are getting the most out of your Super.
1. Account Details
Firstly, you should check that your Super fund has your correct contact details. Why is this important? If your Super fund is unable to show they have up-to-date contact details for you they may be required to transfer your superannuation balance to the ATO.
The ATO will only apply interest equal to Consumer Price Index (CPI) growth to amounts it holds. If you have built up a sizable retirement nest egg, this could mean a significant reduction in the investment earning you will attain.
Generally, you should be able to review and update your details using your Super fund’s secure member website or mobile app. To update your contact details with Christian Super, login into your Member Access pages.
2. Employer Contributions
Next, you check that you are receiving the proper contributions from your employer.
Employers are obligated to make superannuation payments to your Super fund at least quarterly at a minimum amount of 9.5% of your gross earnings (before tax). This will not include earnings such as over-time.
Again, this can be checked using your Super fund member website or mobile app.
If you are not receiving your employer contributions you should enquire with your employer. It may be that your employer is paying your Super to another Super fund. If this is the case you can request your employer pay these contributions to your preferred Super fund. To do this you will need to provide your employer with a choice of fund letter. A copy of Christian Super’s choice of Fund letter can be found here.
3. Check for other or ‘lost’ Super funds
You may think you have a single Super fund, but this may not be the case. As of 30 September 2017, the ATO holds over $18 Billion in lost and inactive Super. Not to mention that the typical working Australian has at least two Super fund accounts. If you have never looked into this, it is quite likely that you either have Super held with the ATO or a second Super fund you are unaware of.
Rolling all your Super into one fund reduces any potential fees you may be paying to multiple Super funds and helps you to keep track of your Super in one place. You can use the MyGov website to check for and recover any of your Super held with the ATO. It’s easy to rollover your Super from other Super funds to Christian Super. Call us on 1300 360 907 or email to email@example.com to get started with consolidating your Super.
While there is always more you can do to tailor your Super such as managing your insurances or reviewing your investment options, the above three areas are a great place to start to help your Super head in the right direction.
And remember, if you have any concerns or questions, please don’t hesitate to Call us on 1300 360 907 or checkout the Consolidate Super tab in member access.
Chief Member Officer
General Disclaimer The content of this article includes advice that is general in nature and does not consider your personal situation. Christian Super encourages all people considering their options in retirement planning to seek out qualified professionals who can provide specific personal advice.