Watch­ing your su­per could save you $51,000

The Courier-Mail - - NEWS -

$52.5 bil­lion in the next decade. The report re­vealed that 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 that em­ploy­ees are au­to­mat­i­cally de­faulted into un­less they choose oth­er­wise. Other al­ter­na­tives in­clude opt­ing for money to be in­vested in cash or high­growth op­tions. High growth is when money is in­vested more heav­ily in riskier as­sets such as eq­ui­ties.

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 that mem­ber ad­min fees are no more than $2 per week and beware of as­set-based fees – some funds do not charge th­ese.

On top of this, mem­bers should also check in­surance cover costs. Bank-owned su­per funds have copped a bat­ter­ing in the fi­nan­cial ser­vices Royal Com­mis­sion for un­fairly goug­ing mem­bers ex­ces­sive fees and de­liv­er­ing poor re­turns.

Aus­tralianSu­per group ex­ec­u­tive Paul Schroder said that MySu­per pro­vided “peo­ple with a sim­ple, cost-ef­fec­tive op­tion for their re­tire­ment sav­ings”. MONEYSAVER HQ P31

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.