What do you actually know about your superannuation?

In conversations with pre-retirees, our Provisional Financial Adviser, Brendan Jones, keeps hearing the same thing: people are switched on at work but switched off when it comes to their super.

We spoke with our broader advice team, and they agreed it was a recurring theme. We often hear:

“I’m not actually sure who my superannuation provider is; it’s just where my employer has always paid it.”

“I know I have a balance, but I couldn’t tell you how much is in there or how it’s actually invested.”

Super is one of the most important parts of any retirement plan, and that’s true at every stage of life (yes, your 30s are included). The investment strategy you choose matters just as much as the balance itself. Your super isn’t a background account you check once a decade. It’s what will fund your lifestyle for 20 or 30 years in retirement.

We recommend that those two things be reviewed regularly:

1. Your provider

Not all super funds are created equal. Investment menus, reporting, transparency, insurance options and fees can vary significantly between providers. Understanding who holds your money, what they’re offering, and whether that offering is still competitive is a reasonable starting point for taking your retirement seriously.

It’s also worth knowing that fees compound over time just as returns do. A difference of 0.5% in annual fees might seem minor today, but over 20 or 30 years it can translate to a meaningful difference in your final balance. The ATO’s YourSuper comparison tool is a useful starting point for benchmarking your fund against others in the market.

2. How your money is invested

A lot of Australians are still sitting in a default or balanced fund without really knowing what that means. It’s worth asking:

• What am I actually invested in?
• What does “balanced” mean for my fund, and does it reflect my goals?
• Has this strategy served me well, and does it match my appetite for risk?

If market news is keeping you up at night, that’s usually a sign that your portfolio isn’t aligned with your risk profile. A good strategy balances the growth you want with the protection you need.

It’s also worth considering your time horizon. Someone in their early 30s with three decades until retirement can generally afford to take on more growth-oriented risk than someone approaching 60. Your investment option should reflect where you are in life, not just where the fund’s default settings landed you when you first signed up.

A super health check should not feel complicated. For most people, it’s the difference between hoping things will work out and actually knowing where they stand.

Ask yourself

When did you last log in to your super portal? If you’d like to talk it through, we’re here to help.

This article was originally inspired by Brendan Jones, our Provisional Financial Adviser here at DP Wealth Advisory. Brendan regularly engages with clients and the broader community to help people understand the value of taking an active interest in their superannuation at every stage of life.