Maximize Your Retirement Savings in Just One Hour This Holiday Season

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Finalising your holiday to-do list? It could be worthwhile to spend an hour reviewing your super.

The Association of Superannuation Funds of Australia (ASFA) — the peak body for the superannuation industry — is encouraging Australians to spend an hour checking their super this holiday season, which could see them thousands of dollars better off in retirement.

“Jump online these holidays to check your super is working best for you and that your security settings are up to date,” ASFA chief executive Mary Delahunty said.

“A simple review could transform your retirement in under an hour,” experts suggest.

In July, the Commonwealth Bank released findings that revealed significant gaps in the understanding of superannuation among Australians.

Further research conducted by Finder in October showed that nearly one-third of Australians, specifically 29%, are unaware of how their super fund has performed over the last year.

It found 33 per cent of Australians don’t know their super balance, 11 per cent have never checked it, and 31 per cent don’t know how their super is invested.

The report also highlights that women and gen Z are less likely to be aware of how their super is invested.

The study recommends evaluating your investment and insurance settings to ensure they align with your age and risk tolerance, as being in the wrong plan could mean missing out on substantial savings.

Additionally, some individuals may enhance their retirement nest egg by optimizing concessional contributions, with the current financial year cap set at $30,000, which includes employer contributions.

ASFA recommends Australians start with the basics by ensuring their contact details are up to date, so they don’t miss important communications from their fund.

The survey, which included 1,500 participants, revealed that 90% of Australians recognize the crucial role superannuation plays in securing financial stability during retirement. Moreover, nearly 80% of respondents expressed confidence in their fund’s ability to make prudent financial decisions on their behalf.

Australians are also encouraged to check how many super accounts they have through their myGov account and, if they have more than one, consider consolidating into their active fund.

A 30-year-old could add as much as $20,000 to their retirement savings in 20 minutes by consolidating three superannuation accounts, including one with higher fees, into a single low-cost fund, according to Delahunty.

“That’s one extra fabulous holiday when you stop working, for less time than it takes to hose the deck for Christmas day,” she said.

Some people may also be able to boost their retirement savings by maximising concessional contributions, with the cap set at $30,000, including employer contributions, this financial year.

Most Australians happy with their fund’s performance

A recent ASFA survey found 79 per cent of super account holders have a positive or very positive level of satisfaction with their fund’s performance.

The survey of 1,500 Australians found 90 per cent believe super plays an important role in ensuring financial well-being in retirement, while nearly 80 per cent trust their fund to make sound financial decisions.

“These results show that Australians think super really is working for them, and also emphasise the benefits of choice in our super system,” Delahunty said.

However, satisfaction levels were lower among people from culturally and linguistically diverse backgrounds.

Those who speak a language other than English at home recorded a 69 per cent satisfaction rate, compared with 81 per cent among people who speak only English.