Where’s your super? It’s time to check.

by

Jack Derwin

April 11th 2022 3 minute read

When was the last time you looked at your superannuation? While super is a long-term investment, it’s crucial you review yours from time to time to ensure it’s doing what you want.

It’s up to you how often you do it, but there are a few reasons why now is a great time to review your fund. These are three questions you can ask next time you do.

1. Where is your superannuation invested?

The Australian Government is reviewing the superannuation industry in an effort to make the sector more transparent. From 31 March, funds will be obligated for the first time to disclose their holdings. This means members will finally be able to see each underlying investment in their super fund, with an update to be provided to members every six months thereafter.

That’s why it’s a good idea to check your superannuation option next month and make sure you’re comfortable with its allocation. If you’re not, you can always switch to another fund or change your investment options.

2. How is your superannuation performing?

If you’ve checked the market recently, you may have been shocked to see plenty of red. While you shouldn’t panic, a market correction can be a good time to see how your fund has performed. By comparing its performance to the overall market and other funds, you can begin to get an idea of the kind of risks your fund is taking and compare it to your own risk profile.

Take these numbers with a grain of salt however. If you’re young and a long way from retirement, you may have plenty of time left in the market to ride out short-term fluctuations. 

On the other hand, older investors who are looking to retire in the short term tend to have less risk appetite and are more likely to want to protect – rather than grow – their wealth.

Whichever boat you’re in, it can be useful to periodically review your superannuation investments to ensure you understand how they are doing. Just be careful not to check too frequently or make a major decision without thinking it over. Remember that past performance is not a reliable indicator of future performance.

3. Are you investing with your values?

No matter what is going on in the market, transparency and control are always hugely valuable. For one, it gives investors the ability to allocate their money in a way that reflects their values.

For example, you may not wish to lend your money to tobacco companies, or fund new coal mines or be invested in companies you may simply deem unethical. 

Russia’s invasion of Ukraine two weeks ago for example has seen a flurry of investors and companies withdraw their capital from the country in a bid to withdraw support for President Vladmir Putin. A few Australian super funds have already pledged to divest from Russia along with the Future Fund, Australia’s sovereign wealth manager.

If you feel strongly about the situation, it’s worth checking on whether or not yours has taken similar action. 

Switch super funds

You may consider switching to Superhero Super and taking control of your retirement savings. Autopilot allows you to invest thematically while members can invest up to 75% of their fund directly into shares and ETFs with our Control option. 

 

Please read our Product Disclosure Statement, Additional Information Guide, Investment Guide and Insurance Guide in addition to our Target Market Determination for our Autopilot Account and Control Account before making a decision to acquire, hold, or continue to hold an interest in Superhero Super. A Target Market Determination (TMD) is a document which describes who a product is appropriate for.

This information is general in nature and does not take into account your personal objectives, financial situation or needs. Please speak to a licensed financial adviser to receive advice tailored to you. This information has been prepared by Superhero Markets Pty Ltd (ABN 36 633 254 261), a Corporate Authorised Representative (CAR No. 1276309) of Superhero Securities Limited (ABN 96 160 456 315) (AFSL No. 430150). Superhero Super is issued by Diversa Trustees Limited (ABN 49 006 421 638), (AFSL No 235153), as trustee of OneSuper (ABN 43 905 581 638). Superhero Super is a sub-plan of OneSuper.