Aussies warned to guard against hefty su­per losses

The Northern Star - - NATION -

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.

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