Have you checked your super balance lately? If not, you could set yourself up for a tough time financial income retirement? Merely taking a few minutes to check your super statement of intent to send it to you can ensure everything is working as it should. Here are a few things you should look for when checking your superannuation.
1. Has your employer paid you what they owe you?
Anyone who’s over the age of 18, or are under 18 but working more than 30 hours a week can you earn over $450 your employer has a legal obligation to pay 9.5% of your ordinary earnings into a Superannuation account this is known as the super guarantee these payments have to go into a super fund of your choice. (1)
A recent ATO audit revealed that up to 20% of employers aren’t making the correct contributions for their employees. (2) That’s almost $3 billion missing from the superannuation accounts of Australian employees. Regularly checking your super account will mean that you’re not part of these statistics.
2. How can you be sure you have received your extra payments?
Checking to make sure your super statement has the correct address and other contact information may seem unimportant at first. However, it is imperative that if you’re details are out of date and you make any changes to your super fund, you could end up losing your contributions. Far too many Australian’s starting new jobs, fail to update their contact information about their superannuation. This can add to additional fees from having two fund accounts open.
3. Is the correct tax file number on your account?
Let’s face it, nobody likes tax and certainly nobody likes paying taxes. However, you should know that your superannuation will be taxed. Generally, any of these payments from your employer are taxed at 15%. While earnings on your investments should be taxed at a maximum of 15%. (3) It’s not uncommon for statements to show that people paid more tax than they should. If you find this to be the case talking to your financial adviser is the first step you need to take to rectify the situation.
4. Are your Investments working for you?
As your super matures this becomes increasingly important. When you opened your superannuation account 20 or 30 years ago, the choices you made for your investments may have been right at the time, but we are living and working in an ever-changing market. The likes of Uber, Amazon, and even Apple either didn’t exist or were not considered investment opportunities then. This is true for many other opportunities in the market.
One of the key benefits of a superannuation account is that you can choose exactly when, where, and how you want to invest. Talking to a financial adviser will allow you the opportunity to discuss different investment options available for your super. As possibly the second biggest asset you will have in your life, outside of your home, it’s essential to check your super balance from time to time.
It is fair to say that a lot of people do not accurately read their super statements or log in to check their super online. Whilst we understand it’s not always something high on everyone’s list of priorities because “it’ll be there when you need it.” The truth is, you may need it sooner than you expect, or your future financial needs may exceed your projected balance in retirement.
For more information, contact us on 07 4779 0555 to arrange a Complimentary Super Check with a Best Wealth Creation Adviser.