A recent survey has highlighted a startling revelation: approximately 6.2 million Australians are unaware of how their superannuation funds are performing. This study, conducted by Finder with over 1,000 participants, reveals that nearly 29 percent of Australians do not actively keep track of their super funds.
Additionally, the survey found that another 16 percent of respondents do monitor their superannuation but are dissatisfied with its performance. This widespread lack of engagement with super funds has experts sounding the alarm, stressing that such indifference could severely impact financial security in retirement.
Alison Banney from Finder emphasized the potential consequences of this negligence, stating, “The difference between an average fund and a top-performing fund can be the difference between just scraping by in retirement and living comfortably.” She warned that ignoring fund performance could result in tens of thousands of dollars in lost returns by the time individuals retire.
Experts are now warning this complacent attitude could cost Aussies thousands when it comes time to retire.
“The difference between an average fund and a top-performing fund can be the difference between just scraping by in retirement and living comfortably,” Alison Banney from Finder said.
“This ignorance could cost you tens of thousands of dollars come retirement due to reduced returns.
“If you’re not monitoring your super’s performance, you could be leaving the equivalent of an entire year’s salary or more on the table by the time you retire.”
Banney said the fact money is paid directly into the super fund by employers can lead to workers forgetting about their super, especially as other financial pressures seem more pressing.
“Many give this money very little attention,” she said.
“It’s often a case of ‘out of sight, out of mind.’”
Banney also said consistently monitoring their super fund is important, as different funds will suit different stages of your life, and also pointed out 55 per cent of Aussies were satisfied with how their super fund was tracking.
