What To Check On Your Annual Super Fund Statement

1. Your personal details

• Verify the accuracy of your personal details to avoid problems later
• Ensure both your email and postal address are still correct
• Verify your super fund has your tax file number (TFN), or you may pay extra tax on contributions and earnings. Your statement should show your TFN status as ‘supplied’. Without a TFN, your fund cannot accept personal super contributions from you.

2. Your account balance

• Check your account’s opening and closing balance to see how much you had in your account at the start and the end of the financial year.
• Understand the different components making up your account balance:
  • Preserved: Can be withdrawn if you satisfy a condition of release
  • Restricted non-preserved: Can be withdrawn when you leave your employer or satisfy another condition of release. Usually only applies to contributions made prior to 1 July 1999
  • Unrestricted non-preserved: Can be withdrawn at any time, but tax may apply.

3. Your total fees

• Check your fees and costs summary. Fees will be broken down into those deducted directly from your account and indirect fees and costs that affect your investment return. You can see the individual costs deducted from your account in your transaction statement. Common fees include:
  • Administration fees (which may be a fixed dollar amount or a percentage of your balance)
  • Insurance premiums or fees
  • Investment switching fees
  • Adviser service fees (if you have a linked financial adviser)
  • Tax benefits on fees (this is usually a credit, not a deduction – it shows the benefit of tax deductions that your fund has passed on to you to help reduce fees)
  • Investment fees and costs (fees charged by investment managers and costs associated with investing, such as brokerage and stamp duty – the cost varies depending on the investment option you select)

• Compare your annual fees with those of a similar super fund to check you aren’t paying too much. Consider switching funds if you believe your fees are too high.

4. Your insurance

• Check any insurance cover you have with your super account and how much you’re being charged for it.
• Review the type of cover you have – super funds commonly offer death, permanent disability and income protection insurance.
• Think about whether your current level of insurance protection would cover the regular bills or pay off your mortgage if something happened to you. It’s sensible to review your insurance cover annually or as your financial circumstances change. You can apply for extra cover or another type of cover with your fund if you need it. Your fund’s website and product disclosure statement (PDS) will describe what is available and how to calculate your premiums.
• Ensure you’re not paying for insurance you don’t need. Perhaps you have more cover than necessary, or there is income protection attached to your account when you’re not working. If you also have a policy with another super fund or insurance company that provides the same type of cover, consider whether you need the entire combined amount and which policy offers better terms and conditions. Some super funds can even help you transfer cover from another provider into your account with them so you can have all your protection together. 

5. Your investment return

• Check how your investments have performed this year and how your return compares to the benchmark listed on your statement. If performance is similar to or better than the benchmark, the fund’s investment team is doing its job. If you’re using a member direct service in your fund, you can compare your results to a similar managed option to check how you’re doing in comparison to the professionals.
• If you’re unhappy with your investment return, compare it with returns for the broader investment market and with similar investment options from other super funds.
• Focus on long-term investment returns, not just this year’s result. Your statement should show returns over 5- and 10-year periods compared to the benchmark. One bad year may be unimportant if the fund’s long-term results are good – this year’s superstar can be next year’s dud, so there’s not much to gain from shifting super funds if your long-term returns are solid.

6. Your investments

• Check the investment option (or the mix of options) listed on your super statement. Each investment option has a different combination of assets such as Australian and international shares, property, fixed interest and cash.
• Think about whether your chosen investments reflect your current risk profile. One of the most pain-free ways to boost your super balance long-term is choosing investments with more growth potential, if you can stomach the extra ups and downs. On the other hand, if you can’t accept volatility, you may want to opt for a more conservative mix.

7. Your contributions and transactions

• Review the list of transactions for your super account during the year. Ensure it includes your employer’s contributions and any personal contributions you made during the year. You should also check the fees and insurance premiums debited from your account.
• Check your employer puts regular Superannuation Guarantee (SG) contributions into your super account. If their SG contributions are not listed, contact your employer or HR person immediately.

• Check your employer paid your salary-sacrifice contributions into your super account if you salary sacrificed to super during the period.
• Check contributions tax was deducted for any personal contributions you claimed as a tax deduction. If you didn’t submit your notice of intent to claim a deduction until after 30 June, this transaction won’t appear on your annual statement, but you can see it in your online transaction summary.

8. Your beneficiaries

• Check the beneficiary, or beneficiaries, nominated to receive your super benefits if you die, and update the details if they no longer reflect your wishes.
• If your nomination is binding, check the day it is set to expire. Set a calendar reminder to renew your nomination in the month prior to its expiration. If you have a non-lapsing binding nomination, you can skip this step.
• If your nomination isn’t currently binding, consider whether you would like to make a binding nomination now for more certainty about who will receive your super when you die.

9. Your retirement plans

• Consider if your retirement is on track. Many super funds now provide a projection of your likely account balance at retirement on your annual statement. Your statement may also show an estimate of the income this balance is expected to generate in retirement, and the impact that making additional contributions could have on your outcome.
• Think about whether your current level of super contributions will take you to your retirement savings goal, or whether you will need to make additional contributions to get there.

10. Your satisfaction

• Review whether you’re satisfied with your current super fund. Are the investment options it offers right for you? How does its customer service stack up? Is the education and insurance it offers aligned with what you want or need?
• Consider whether you want to consolidate your retirement savings if you have multiple super accounts. Before making any decision, compare each super fund and ensure you check whether you can get the same insurance cover if you merge your existing accounts.