Why smart people can be dumb with their super
Even the brainiest among us can make questionable choices when it comes to super. Here’s how to avoid the common trap of 'set and forget'.
Key learnings covered in this topic
- Understanding 'set and forget'
- Consequences of neglecting super
- Smart strategies for managing your super
You're all over your finances—you crunch the numbers and you’re a genius at getting the best deals. You've got it all figured out... or have you? When it comes to super, if you’ve fallen into the common trap of ‘set and forget’, then you’re not alone. So, why do smart folks miss the best opportunities within super?
First, let's break down what we mean by ‘set and forget’. Essentially, it's setting up your fund, making an initial investment choice for your super, and then simply leaving it untouched for years, or even decades, without reassessing or adjusting it to suit your changing life.
If you're someone who’s busy juggling work, family and life, it's easy to put your super on the back burner and assume that it will take care of itself. After all, if it ain't broke, why fix it? But little do you know, the super landscape is constantly changing. What was a stellar strategy five years ago might be as outdated as yesterday's news, and your super might be missing out on opportunities to flourish.
So, how can you avoid being dumb with your super? It's simple – set aside time each year to give your super a once-over.
5 smart things to do with your super
1. Check your balance
Keep a close watch on your super balance, after all, it’s one of your biggest investments. You can easily track it by logging into your MemberOnline portal. And if you’re ever wondering how your balance stacks up against your peers, use our tool to see how much super you should have right now and how it compares.
2. Find all your super
If you've had multiple jobs, chances are you have multiple super funds. There's also a possibility you’ve lost super, especially if you've moved house. Having one super account can save you from multiple fees and extra paperwork. You can easily find all your super through MemberOnline and consolidate in a few clicks.
3. Choose the right investment
Super may be the second biggest asset you’ll have after your family home, so picking the right investment option is a big deal. Choosing the right level of investment risk for your super can also prepare you for the future. To check or update your investment option/s simply log in to MemberOnline.
How to invest when you know nothing
4. Contribute a little extra
Super should be tackled long before you retire, and clever use of some powerful strategies could save you thousands in tax and boost your nest egg big time. Even adding as little as $10 a week will add up over time. There are different ways you can contribute to your super, and they can come with some extra perks.
5. Check your insurance
You may have insurance through your super, but is it right for you? You’re probably not the same person you were when you first got your insurance. So, if you’ve hit a milestone like buying a house or welcomed a child, it’s time to reassess it to ensure you’re protected. And if your existing cover doesn't quite fit the bill, you can apply for more cover, reduce it, or even cancel it altogether. Log in to MemberOnline and see what insurance cover you have in place.
Want more smart tips?
We offer webinars on a range of topics that can help you get the most from your super. And don't be afraid to seek out expert advice if you're feeling stuck. At no extra cost our experts can help you over the phone to sort your super, teach you about your investment options and uncover your risk appetite.
With a just a little effort and a whole lot of smarts, you can ensure a brighter, more secure future.
Information correct as at 17 April 2024.