June 28, 2024

Know how your super works? Ask yourself these three questions.

Your super is money put aside by your employer to help secure your financial future. Knowing how your super works may help you reach your financial goals faster, leading the way to a more comfortable retirement.

By Stella Ong

Home > Blog > Learn > Know how your super works? Ask yourself these three questions.

 

The Australian Superannuation Industry is a $3.5 trillion industry unique to those residing in Australia. As of FY2025, all Australian employers are required to contribute 11.5% of your income into your superannuation fund to help you fund your retirement. 

Whatever age you are, it’s always crucial to review your super from time to time to understand where you sit in reaching your financial goals. Different superannuation fund providers offer different levels of flexibility. Depending on which one holds your super funds, you may choose to invest yours either in a limited or wide range of investment options. 

Superhero Super allows you the flexibility to choose whether you’d like to leave your super in the hands of the professionals or if you prefer to invest it yourself directly into ASX 300 shares and a select range of ETFs, LICs and hybrids.**

Either way, it’s always a great time to review your fund

Here are three questions to ask yourself every time you do.

1. Where is my superannuation invested?

Superannuation is designed to support you in retirement, and being aware of where your money is invested allows you to make informed decisions to ensure it meets your retirement goals.

Depending on where an individual chose to invest $10,000 in between 1994 and 2024 for example, that $10,000 could have grown very differently.

$10,000 invested* in June 1994 (20 years) at different levels of returns:

Portfolio #1 10.0% $73,281
Portfolio #2 7.5% $44,608
Portfolio #3 5.0% $27,126
Portfolio #4 4.0% $22,226
Portfolio #5 2.0% $14,913

*with no further contributions, no fees and calculated with monthly compounding. This table is an example only, results are only estimates and not guaranteed.

Calculations done with: Moneysmart

 

As you can see, returns can vary widely depending on which portfolio of investments was chosen.

Most of the time, your superannuation fund provider sets a default investment option for you if you did not opt for a specific choice. Not taking the time to check your super increases your risk of being subject to underperforming investments and perhaps even higher management fees.

That’s why it’s always a good idea to check what investment options your superannuation funds are invested in. If you’re not happy with where they are, you can consider switching to another fund or changing your investment options. As always, before you make a decision to rollover, you should consider how rolling over may impact you, including fees or insurance covers.

2. How is my superannuation performing?

It’s not just about where your super is invested that you should keep track of, but also how it’s performing.

After all, you may have decided on some specific investments after doing extensive research, but there is always the possibility for investments to either not perform as expected or for your investment goals to change over time.

For example, younger individuals that are decades away from retirement may have plenty of time left in the market to ride out short-term fluctuations in pursuit of higher potential for capital growth. 

Meanwhile, older individuals looking to retire in the near future may have less appetite for riskier investments and more likely prefer to focus on preserving rather than growing their wealth.

Whichever boat you’re in, it is always prudent to periodically review your superannuation investments to ensure you understand how they are performing and whether your portfolio needs to be rebalanced as you progress through different life stages. 

Always remember that past performance is not a reliable indicator of future performance. Taking the time to do research may serve you well.

3. Have my goals and circumstances changed?

The amount of time you have between your first superannuation contribution to your retirement will most likely span several decades.

Investments that may suit your goals or that you may prefer can change over this time frame. Factors that may influence your investments, such as your risk tolerance, investment time horizon and financial goals are not set in stone.

For instance, a significant increase in income might boost your risk tolerance, making you more comfortable with higher-risk investments. Conversely, nearing retirement could prompt a desire for more conservative, lower-risk investments. 

Even external factors like superannuation laws, tax implications, political environment and natural events may change how you want to invest your super.

Regularly checking your super, where and how it’s invested, and how it fits into your goals and circumstances will ensure that you keep your investments aligned with your life’s journey.

 

How can Superhero Super benefit me?

Now that you’ve asked yourself these three questions, you may be interested to know more about how Superhero Super can be beneficial.

Superhero Super is a superannuation fund provider that offers you the flexibility to manage your retirement funds exactly the way you want**. 

Our super allows you to invest directly into ASX 300 shares, and a select range of ETFs, LICs and Hybrids if you wish, but also gives you the option to instead leave your funds in the hands of a professional fund manager. 

And what’s more, your investments aren’t set in stone. We understand that life happens and circumstances change, and have thus made it our goal to make your super as flexible and as easy for you to manage as possible. 

View and manage your super anytime through our mobile app; reallocate your funds to different investments as it suits you.

Love Superhero Super’s features? If you think we may be the one for you, here’s how you can make the move to Superhero Super.

 

As always, Superhero Super does not provide financial advice that considers your personal objectives, financial situation or particular needs. All investments carry risk so please consider carefully before investing. Before deciding whether Superhero Super is right for you, please read the Product Disclosure Statements (PDS) and Target Market Determinations, found at superhero.com.au/support/documents.

**Holding limits apply to investments held by members in Superhero Super.

23-10_general_CTA-banner@2x

Become a part of

our investors' community

Why you should join us:

  1. Join free and invest with no monthly account fees.
  2. Fund your account in real time with PayID.
  3. Get investing with brokerage from $2. Other fees may apply for U.S. shares.