Aussies warned to guard against hefty super losses
AUSTRALIANS could be dudding themselves more than $50,000 in retirement savings by failing to pay attention to their superannuation, alarming new statistics have shown.
The research by Rice Warner, in conjunction with the Australian Institute of Superannuation Trustees, found collectively workers could be short-changing themselves $52.5 billion in the next decade.
The report revealed for a single person on an annual income of $100,000, they would end up with $51,000 less over a working lifetime if they did not have their money in a fund’s default MySuper option.
The difference in returns is based on a 25-year-old who retires at age 67.
The member could end up with $503,000 at retirement versus $452,000 if they opted for a different investment option outside of MySuper.
MySuper is a low-cost and simple option which employees are automatically defaulted into unless they choose otherwise. Other alternatives include opting for money to be invested in cash or high growth options.
AIST’s chief executive officer Eva Scheerlinck has urged super fund members to check the fees they are paying on their accounts.
“We want people to realise the money in super is their money,” she said.
“They should take half an hour every couple of years to work out if it’s right for them.”
She suggests checking member admin fees are no more than $2 per week.