The superannuation industry has been one of the hardest hit by the COVID-19 pandemic after the Government allowed those experiencing financial hardship to withdraw up to $20,000 over two separate periods.
Recent studies suggest over $30 billion had already been drained from super accounts by nearly four million people. Official forecasting predicts that number will grow as high as $42 billion.
It’s a statistic that leaves many pondering a very important question – given the extraordinary circumstances, has my super been impacted over the past few months?
Even without the pressure of COVID-19, it’s important to be regularly checking in on your super fund; most importantly, its performance and asset allocation, the fees you pay, and how your retirement money is tracking.
Don’t let yourself be fooled by only looking at performance numbers – benchmarking your superannuation fund in terms of its returns, their fees, and the services and benefits they offer against others in the market is the most effective way of measuring whether it is currently working for you.
From there, the key to ensuring you get the most out of your super lies in the following:
• Consolidate your funds – if you have more than one super fund from previous jobs, you are likely paying multiple sets of fees and it is more difficult to check your balance
• Adjust your fees – constantly compare your annual fees with those of comparable funds
• Establish and maintain a long-term strategy – market downturns are inevitable, so making significant changes to your super at the drop of a hat can be counterproductive
• Check your cover – ensure the auto-accepted level of cover is right for you or adjust accordingly