How to read your super statement

Super statement season is here, and understanding yours can be a ticket to saving money. Superannuation funds have six months from June 30 to deliver annual statements in print or online and most arrive around September.

If you ignore yours or are confused, you might lose money through fees, insurance or tax.

QSuper chief of member experience Jason Murray says a key thing to check is that your employer has paid compulsory contributions of 9.5 per cent of your ordinary wage.

“While low fees and strong investment returns over the long-term will make a difference, they can only make a difference if you’re getting the money you’re owed,” he says.

Your statement should show any extra contributions you’ve made through salary sacrifice, other personal tax-deductible contributions, or personal after-tax contributions.

Murray says your statement will show your opening and closing account balance for the 2019-20 financial year.

“Ideally, your statement should also include a snapshot of your account over the past five years so you can see how your retirement savings are tracking,” he says. Tally up the fees – anything more than 2 per cent of your overall fund balance is expensive.

Colonial First State general manager Kelly Power says the annual statement is a good chance to check your balance, personal details, contributions, life insurance costs and beneficiaries.

Rule changes in recent years have resulted in “a significant number” of life insurance policies in super being cancelled in low-balance or inactive accounts, Power says says. “Check you are comfortable with your level of cover and premiums paid,” she says. Many super fund members will see a COVID-induced negative return on their investment for the 2019-20 financial year.

“Recognise that it is a long-term investment and don’t react to shortterm market volatility,” Power says.