There’s a lot to love about being female but when it comes to finances, women…
Why should you review your super?
One of the biggest assets you’ll accumulate in your lifetime is your super.
However, many Australians think they don’t need to worry about their super until retirement.
It’s important that you regularly review and manage your super, at the very least make sure you:
- are getting the super you are entitled to from your employer
- know where it is.
Missing out on some employer contributions today could have a huge impact on your super balance in retirement due to the compounding effect of earnings. The same can happen if you have lost or unclaimed super.
Benefits of a super health check
A super health check consists of 5 simple and important things you can do to get on top of your super today. It will help you:
- manage your super
- understand your entitlements
- make better choices for when you retire.
You should consider doing a health check each year when you prepare your tax return.
Check 1: Check your contact details
Check that your contact details and tax file number (TFN) are up to date with the ATO and you super fund. This will help prevent lost super and assists the ATO in matching any unclaimed super to you. It’s also important to check that your bank account details are up to date with the ATO.
Check 2: Check your super balance and employer contributions
It’s important to check your super balance each year to see how much you have and keep track of your employer contributions. This can be done anytime on ATO online or through you super fund.
Employers should pay into your super at least every 3 months. From the 1st of July 2023 your employer should pay at least 11% of your salary into your super account. If you’re under 18, you need to work more than 30 hours a week to be eligible for super.
Check 3: Check for lost and unclaimed super
You may have lost track of some of your super when you changed your name, address or job, for example. This is why it’s important to ensure your fund has your current details.
Lost super is when your fund has lost touch with you, or you account is inactive. This money is held by your fund. Unclaimed super is when your fund transfers lost super to the ATO.
All your super accounts including lost and ATO held super are displayed on the ATO online services.
Check 4: Check if you have multiple super accounts and consider consolidating
If you’ve had more than one job, you may have more than one super account. Combining your super may reduce fees and make it easier to manage.
If you decide to consolidate your super accounts, it’s important to choose the fund that’s right for you. You should check that it provides better value, and the insurance cover suits your needs, which may change through your life.
Check 5: Check your nominated beneficiary
Ensure you have a valid death beneficiary nomination in place with your super fund as this isn’t covered by your will. This means your loved ones will not be put through unnecessary difficulties to finalise your estate.
Most binding nominations expire every 3 years, some super funds have an option where nominations do not expire and remain in place until they are revoked.
If you don’t nominate a beneficiary, your fund will not know where your benefit should be paid to. In these cases, they will follow the law, which means they pay it to one or more of your dependants or your legal representative.
For more information go to the ATO website.
If you require any assistance with your superannuation please contact us.