Give your super a health check: 5 steps to follow

1. Review your super fund’s performance

While past performance does not guarantee future results, it’s important to check on how your super fund has been performing, to ensure you grow your balance and generate investment returns.

There are a few ways you can do this:

Use the Australian Taxation Office’s ‘YourSuper’ comparison tool

You can access this tool by logging into your myGov account and heading to the ATO section. Under the ‘Super’ menu, select ‘Information’ and then ‘YourSuper comparison’. This tool should display a personalised list of your current super accounts and lets you compare them against other ‘MySuper’ products (the default version of the super fund’s products).

This tool also works hand in hand with the Australian Prudential Regulation Authority (APRA), who runs a performance test each year. If an investment option fails this strict test for two years in a row, the fund is legally restricted from allowing new members to select it.

Check your super fund’s portal for ‘net returns’

You should also be able to check your fund’s performance through its portal, either via its website or app (if available). Looking at your net returns will often give you the clearest picture, as it shows the investment returns minus fees, insurance premiums, and taxes. Checking your fund’s five and ten-year annual returns can show you how it’s performed over the long term.

Use Canstar’s superannuation comparison table

While we cannot provide you with personalised information on your specific super fund product and investment strategy, Canstar’s comparison table can be a useful tool to see how some of your fund’s products have performed over a one and five-year period, as well as show you what Star Rating they have (if it has been rated). Canstar Research awards a 5-Star Rating to the super funds who offer consumers outstanding value as part of Canstar’s annual Superannuation Star Ratings and Awards.

If you’re thinking about changing super funds, you can compare your options using this table as well. The table’s filters can also be changed to better suit your requirements.

Compare Super Funds

2. Check you’re not paying too much in fees

Super funds charge customers a range of fees, all of which will be listed on your super statement. A seemingly small fee today can have a big impact tomorrow, potentially translating to tens of thousands of dollars of retirement funds lost by the time you’re eligible to access your super, so it’s important to make sure these charges aren’t eating away at your balance.

Wondering how your fees will impact your balance over time? The Federal Government’s Moneysmart website has a Superannuation Calculator which you may find useful. You can also compare approximate fees charged by super funds on Canstar’s database when using our comparison tables, and if you feel you’re being charged too much, it could be time to consider shopping around and comparing your options.

3. Evaluate your investment options

Most super funds give you the choice of how your super balance is invested and you can often choose from a range of different options, including growth, balanced, conservative, or even ‘life stage’—which change investment strategies as you age.

You may also be able to tailor your investments to focus on particular sectors or asset classes like property or bonds, or to only invest in ‘ethical’ companies which may exclude those involved in the fossil fuel, weapons, or gambling industries. How you choose to invest your super is ultimately a personal question in which you should take into account both your current life stage and risk appetite.

Whatever approach you take, it’s important to think about the possible implications different investment options could have on your retirement. For example, could your investment choices mean greater certainty but more modest returns, or potentially higher returns but more risk? It could be worth speaking to a professional financial adviser to help you answer these questions. Super funds often provide personal financial advice for a fee as well, either deducted from your balance or charged directly.

4. Check the insurance your super fund may provide

Did you know that super funds provide insurance? You may already have life insurance through super, including Total and Permanent Disability (TPD) cover and income protection, without realising. Super fund providers must offer members death and TPD cover on an opt-out basis (with some exceptions applying), meaning you’ll need to actively cancel the cover if you find that you don’t need it or if you prefer to have a direct life insurance policy instead.

When thinking about your life insurance options, consider:

• The benefit amount a policy provides and in what circumstances would you be able to make a claim

• If any exclusions, waiting periods, limits, or other conditions apply

• The price of your premiums and how you pay them (directly to an insurance provider or as a fee deducted from your super balance)

Again, it could be worth obtaining professional financial advice when thinking about your life insurance options and how they apply to your personal circumstances.

5. Explore other super opportunities

• Consider consolidating your super fund accounts if you have multiple, as this could help you save on duplicate fees. Just remember to consider what you might lose if you close an existing account (like life insurance coverage).

• Could you contribute more to your super, either by ‘salary sacrificing’ from your pre-tax pay or making an additional contribution after tax to top up your balance? If you’re saving for your first home, you may also be interested in salary sacrificing as part of the First Home Super Saver Scheme (FHSS).

• Take a look at your pay slip to ensure your employer is contributing the correct amount of super on your behalf.

• Consider setting a reminder to check in on your super again in a couple of months, or even the next time you get your annual super statement. A regular check-up could help you stay on track for your retirement goals.

Compare Super Funds