Many Gen Yers seem to be thinking short term when it comes to their finances with new research showing a large number aren’t paying much attention to their super accounts.
According to research by REST Industry Super, 37% of the respondents have no idea how much money they currently have in their super and more than half let their employer choose their super fund.
This lack of engagement also reflects how much knowledge Gen Yers have in regards to how their super was invested. According to the survey, almost 84 per cent had little to no idea about how their fund invested their super.
It is important for Gen Y as well as other generations to pay attention to their super, no matter how old they are. Your superannuation is an investment for your retirement and can ultimately affect when you can retire and what type of lifestyle you will have.
Australians are starting to work longer and retire later in order to fund their retirement. According to the Australian Bureau of Statistics, the average retirement age for those who have retired in the last five years is 61.5 – 63.3 for men and 59.6 for women. So, in order to retire at the age you want, you need to start paying attention to your super now. Listed below are useful tips for choosing and looking after your superannuation account.
Tips for choosing and managing your superannuation account:
Consolidate multiple funds: Currently there is $18.2 billion worth of superannuation which is lost. This is often due to people changing their name, address or job and their fund cannot find them. Consolidating all of your super funds into one will stop you from paying multiple fees and will help you keep track of your super.
Compare super funds: Not all super funds are the same, so you will need to research and find which one will suit your needs. Take a look at the fund’s product disclosure statement as this will tell you what you need to know including: fees and costs, death and disability benefits, insurance premiums, investment strategies available and the risks and likely returns as well as fund features and services.
Check your annual statements: It is important to check your annual statement to ensure all the information is correct and you are being paid the right amount. When you receive your statement, you should check items such as: what you had at the start of the year, your employer’s payments during the year, any amounts you paid in, any bonus Government contributions, fees deducted, cost of insurance cover, your fund has your tax file number and what amount you have at the end of the year.