Linq HR
Australian Human Resources Specialists

Is your Superannuation really that Super?

10.09.21 03:06 PM By Linq HR

When was the last time you checked on the performance of your Superannuation?

The Australian Governments Prudential Regulation Authority (APRA) recently released the results from their first superannuation performance review1.

They have reported Superannuation assets now sit at a record $3.3 trillion2. Over time the superannuation industry has become large and complex and important to many peoples retirement.

APRA found  13 superannuation funds which failed their performance testing with over 1 million people in these funds affected. Each of these funds are required to notify their members of this result.

This should be a reminder that it is important for employees to regularly check their superannuation performances and for anybody found in an underperforming fund to start researching and consider switching.

With many people feeling superannuation is too complex to understand annual statements can often be ignored. This is understandable but over time this can be costly. 

According to the Productivity Commission, the gains from switching from one of the worst-performing funds to the best performing funds could boost the average worker's retirement balance by $660,000. Its review in 2019 found that a 0.5 percentage point difference in fees can cost a typical full-time worker about 12 per cent of their balance – or $100,000 – by the time they retire3.

So when was the last time you checked on your super? Its never too late.

Since everyone's situation is different, it's recommended you seek independent financial advice about super matters specific to your circumstances.

2.Australian Prudential Regulation Authority (APRA), Quarterly superannuation performance, statistics highlights, June 2021 (released 24 August 2021), p3