Your Super Health Checklist
Your superannuation is a significant asset that accumulates throughout your lifetime. However, many Australians tend to overlook their super until they approach retirement, with some not giving it any thought at all. Some people don’t even know where their super is held until they need it.
The truth is, it's never too early to start considering your superannuation, and the sooner you take control of it, the better. Regularly reviewing and managing your superannuation is a wise practice. At the very least, you should ensure that you:
- Receive the full superannuation contributions you are entitled to from your employer.
- Know the exact location of your superannuation account.
- The decisions you make today, no matter how small they may seem, can have a substantial impact on your final superannuation balance. For example, missing out on employer contributions now could significantly reduce your retirement superannuation balance due to the compounding effect of earnings. Similarly, lost or unclaimed superannuation now can be bad news later.
A super health checklist is just what you need.
Your super is an investment that deserves your attention, but it can be hard to know where to start. A super health check consists of five simple and important things you can do to get on top of your super so you can:
- Manage your super.
- Understand your entitlements.
- Make better choices now for when you retire.
You can check on your super at any time. However, we suggest you get into the habit of doing a health check each year when you prepare your tax return.
Do it online! Here’s how…
The best and easiest way to perform your super check is either through ATO online services through myGov, or by contacting your super fund directly. You just need a myGov account linked to the ATO. Once you link your myGov account, you can also use the ATO app.
Let's do a rundown below of what each step involves so you have some extra clarity before you go ahead.
1. Check your details.
Check your contact details and tax file number (TFN) are up to date with the ATO and your super fund. This helps prevent lost super and helps the ATO match any unclaimed super you owe. It's also important to ensure your bank account details are up to date.
2. Check your super balance and employer contributions.
Check your super balance each year to see how much you have and keep track of your employer contributions. You can do this anytime on ATO online services or through your superfund. We suggest doing it annually when you do your tax return since you’ll already be in the same headspace.
Your employer should pay your super at least every three months. From 1 July 2023 to 30 June 2024, your employer should pay at least 11% of your salary into your super. Just remember that if you’re under 18, you need to work more than 30 hours a week to be eligible for super.
3. Check for lost and unclaimed super.
If you’ve changed your name, address, or job, you might have lost track of some super.
“Lost super” happens when your fund has lost touch with you, or your account is inactive — this money is held by your fund. “Unclaimed super” is when your fund transfers lost super to the ATO. This is why it’s important to ensure your fund has your current details.
All your super accounts — including lost and ATO-held super — are displayed on ATO online services, so it should be fairly easy to find and retrieve what you’re owed. If you need help, you can contact the ATO.
4. Check if you have multiple accounts and consider consolidating them.
If you’ve had more than one job, you may have more than one super account (and you may not even realise it). It's important to know how many super accounts you have. Combining your super may reduce fees and make it easier to manage, especially when it comes to retirement.
If you decide to consolidate your super, it’s important to choose the fund that’s right for you. You should check which fund provides the best value and the insurance cover suits your needs, which may change throughout your life. If you need advice on which fund is best for you, MoneySmart is a helpful resource. You can also contact Ascent Accountants for independent, unbiased financial advice from someone in our network.
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 three years. Some super funds have an option where nominations do not expire and remain in place until they are revoked — ask your super what their arrangement is.
If you don’t nominate a beneficiary, your fund won’t know who to pay your benefit to. In these cases, they’ll follow the law. This usually means they pay it to one or more of your dependents or your legal personal representative, and you may not want that.
Need support? You’ve got it.
We have an amazing independent financial adviser in our inner circle that we’d love to introduce you to.
Talk to us about your super and we’ll put you in touch.
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