Now is the time of year you will receive your annual super statement. There are three ways you might respond:
Ignore it.
Use the opportunity to conduct a regular checkup to see how you are going … or
Go further and use this as a trigger to finetune your investments and increase your income
Which action will you take?
Because superannuation contributions have been mandatory since 1992, most Australians now have enough money in super to care how it is being managed and how quickly it is growing. Mandatory super also means mandatory reporting, hence the requirement for all super funds to advise members on the performance of money in their account during the previous financial year.
Different funds will send statements which vary in the amount of detail shared and how the statements are set out. Don’t let statements which are pages long put you off. Now is your chance to get into the driver’s seat and take control of your money and its implications for a comfortable retirement. There are five main pulse points you will need to understand:
Opening and closing balances
Movement of your balance year-on-year
Account summary with transactions and earnings
How and where your money is invested
Insurance provisions and beneficiaries
Each of these pulse points can deliver a different message, with the sum of these messages enabling you to project income changes and consider ways to increase the longevity of your savings. Here’s a brief summary of what to look for and how to use the information you glean.
