How Hard is Your Super Working For You?

by Dominique Schuh

The sharemarket shot back above 5700 points on Wednesday, lifted by a rally in bank shares, which enjoyed their best day in eight months after the relief that new capital requirements weren't as tough as many had feared. ANZ soared 3.9 per cent, Westpac gained 3.8 per cent, NAB rose 3.1 per cent and Commonwealth Bank closed 3 per cent higher, for a cumulative gain of about $14 billion in value.

The S&P/ASX200 climbed 0.8 per cent to 5732.1, with gains in the big four banks alone adding more than 50 points to the benchmark index. The chunky gains in the banks disguised the fact that overall there were slightly more losers than winners on the ASX200 as numerous blue chips ended in the red.

What this means for you:
I read an interesting article this week titled "Why picking a superannuation fund isn't like shopping for groceries". Basically, it was about consumer choice, the more choices the better - right?

Well it seems in the case of superannuation funds the answer may be no. In comparison to shopping for something like a smart phone, superannuation is a complex product for consumers and too many options can just add even more confusion.

With more superannuation products coming into the market and consumers generally not understanding the different fee structures in different superannuation funds or their different investment options, the choice and complexities may become overwhelming. It has been found that about two-thirds of all super fund members have their money in default accounts…. Which is the most important fact I took from this article, as this means that two-thirds of the population are leaving their future stability set to default!

Whilst it seems that many people have become complacent about how their super is invested and the fees that are being charged by super funds, having your super invested in the correct manner for where you are in your life and in-line with your tolerance for risk will stand in you good stead for the day you are able to access your super - retirement.

Having this understanding can also mean the difference in retiring comfortably or having to be careful with each dollar you spend in your golden years. Whilst we don't have a crystal ball to predict what markets may or may not do, we can help guide you to make sure that your superannuation is invested wisely and that the fees being charged aren't unnecessarily eating into your retirement income.

If you would like to talk about your superannuation and how it is invested, give us a call. In an optimum situation, your super is working just as hard as you are!