Boosting your super is all about the balance

Do you know how much you have in super? If the answer is “yes”, you’re among the one in four Aussies with super who say they do. You’re also most likely to say you are in an above-average fund. And you have a higher balance.

More than half of those who claim to know their exact balance say their fund’s performance is at least above average, according to a survey of 1042 people by the researcher UMR.

Interestingly, the results showed that age does not determine engagement with super. While 30% of over-55s claim to know their super balance exactly, so do 26% of those aged 35-54 and 23% of those aged 18-34.

With the new year under way, Industry Super Australia is urging Australians to get up to speed with their super, concluding that more engaged members are happier with their fund’s performance. “People who check their super are generally happier with how their fund is performing – the more engaged you are, the more likely you are to make good financial decisions,” says Industry Super Australia chief executive Bernie Dean.

So now is a good time to do something about it. Check you are being paid all your entitlements and you are in a top fund. Consolidate your super into one account.

And consider making extra contributions. Industry Super Australia calculates that a 30-year-old on average wages who salary sacrifices $20 a week into super will have $67,000 more at retirement and will get a tax saving now.

A separate survey of more than 2000 people by Equipsuper found “gaping holes” in general knowledge about super. It found that people fit into three categories: almost one in three had “no idea” how much super they had; a third said they knew the “ballpark” amount; with the remaining third saying they knew “to the nearest thousand”.

One in five survey respondents had invested for the first time in shares, exchange traded funds, non-fungible tokens, cryptocurrency, super or other investment products since the pandemic started.

But Equip CEO Scott Cameron says an increased interest in non-traditional investing is placing many Australians at risk of retiring with less super, and consequently less financial security.

“While more investment options are emerging, superannuation remains one of the most important financial assets,” says Cameron.

“It’s concerning that so many Australians have no idea how much they’ve saved after years of hard work.”

In 2019, more than 21 million passengers passed through Auckland Airport. In the year to March 2022, that number was closer to five million. International passengers had fallen from 10 million to just 600,000.

This was the point where we upgraded New Zealand’s premier international gateway. Back then, the price was around $6.50 and the case for purchase was built around a traffic rebound, an attractive valuation and a huge freehold landbank.

Since then, things have played out wonderfully. Auckland Airport recently increased its guidance for 2023 earnings. Previously, management had expected an underlying net profit of $NZ50 million ($46 million) to $NZ100 million, but that has been bumped up to NZ$100 million to $NZ$130 million.

“We are increasingly confident that aviation is returning to normal,” management said. “For the full 2023 financial year, we are now anticipating international passenger numbers will be between 60% and 70% of pre-Covid levels and domestic passenger numbers between 85% and 90%.”

With the company maintaining its pre-pandemic policy of paying out 100% of underlying net profit, distributions could resume early this year and might be up to NZ8.8 cents, at the high end of profit guidance. The stock has risen about 15% since the guidance was adjusted upwards.

The airport’s operations – and air travel generally – are now rebounding strongly. With decent long-term growth prospects, numerous competitive advantages and a valuable land bank for development, Auckland Airport is a BUY below $7.