As a super fund member, you should have received your annual super statement by now – in your inbox or your letterbox, as per your preference.
It can be a little hard to know what to make of it. And all the figures and terms included in the statement can make it tougher to understand. While that may be so, it is important to check at least a few key points to ensure your savings are on track.
Furthermore, several changes have taken effect from the 1st of July 2019 that may also impact your super. For example, the recent implementation of the ‘Protecting Your Super Package’ that has received a rather mixed reception.
Here’s a complete review checklist that will help you browse your super statement and ensure you understand the nitty-gritty. But if there are details that are still proving to be difficult to nail, we are at your service to help iron them out.
1. Check your personal details
While conducting a review of your super statement, it is a good idea to check for the accuracy of all the information you have provided. This includes:
Check your contact details: address, email address, phone number etc. These details are used while corresponding with you regarding your super fund.
Check if your Tax File Number (TFN) has been supplied or you may pay extra tax. Without a TFN, your fund cannot accept personal super contributions.
Check if the listed details such as your date of birth, salary, occupation, and “smoking/non-smoking” status are correct. These details may be linked to your personal insurance(s) held inside of super.
2. Check your transaction summary
Your transaction summary highlights ‘credits and debits’ for the financial year in a fashion similar to your personal income/cash flow statement.
Credits: These may include rollovers, personal and employer contributions, government contributions, as well as fee rebates and investment distributions.
Debits: These may include personal insurance premiums, taxes, administration, investment and advice fees, as well as expense recovery fees and family law split fees.
3. Your investment summary
Check the investment option listed on your super statement, as this explains your mix of investment assets. It is important to understand what your current investment risk profile is and whether the investment summary ties in properly with your risk profile.
It may be worthwhile to engage a financial adviser while reviewing this section. A financial adviser can help you determine:
Your investment risk profile and asset allocation.
Your financial situation, goals and objectives.
Your expected investment performance, and tolerance.
4. Your account balance
Just like your bank account balance, it is important to keep a tab on your super account balance. Check your closing balance and if it meets your expectations. If you’re unhappy with your returns, compare them with the returns for the broader market and with other similar super funds within the market.
It is crucial to remember that advice is available, and a good financial adviser may help you improve your fund performance considerably!
5. Your beneficiaries
Super isn’t necessarily distributed via your will when you pass away. This makes it even more crucial to nominate and name beneficiaries.
While nominating a beneficiary, consider the following:
Your relationship to the nominated beneficiaries. And if these relationships have changed recently.
Your percentage allocation to the nominated beneficiaries.
Your type of nomination - whether it is binding or non-binding, and if it lapses.
Your annual statement offers a good and timely opportunity for you to review your super. Do consider gleaning help and advice from a trusted financial adviser while making changes to your super and to improve the performance of your fund.
At Oakmont FG, we recognise that your needs are unique and so we tailor solutions to suit each client. We specialise in the areas of corporate and individual superannuation.
If you have questions regarding our article, please do not hesitate in contacting us. We’re here to help.
General Advice Disclaimer
The information contained on this website and in this blog-post is general in nature and does not take into account your personal situation or circumstance. It is recommended that you consider and use the information provided responsibly, and where appropriate, seek professional advice from a financial adviser.
Although, every effort has been made to verify the accuracy and correctness of information, Oakmont Financial Group, together with our consultants, officers, agents, and employees, disclaim all liability for any loss or damage suffered by any persons directly or indirectly relying on this information.