Many Australians take a ‘set and forget’ approach to their superannuation, rarely checking how their retirement savings are performing.
So it’s hardly surprising that 29 per cent of Aussies in or nearing their 60s don’t know their superannuation investment mix or risk profile, even as they approach retirement, according to research from Money.com.au.
Your superannuation investment mix or risk profile refers to how your super fund invests your money — that is, the blend of different asset types (like shares, property, bonds, and cash) and how much risk you’re willing to take to potentially earn higher returns.
Understanding your risk profile is important because it helps ensure your super is invested in a way that aligns with your goals, time frame, and comfort with market ups and downs.
Among older Australians who do know how their superannuation is invested:
Money.com.au’s Finance Expert, Sean Callery, says too many older Australians are in the dark about how their retirement savings are being managed.
“Not knowing your investment option or risk level means not knowing whether your super is suited to your retirement years and preferences. It’s important to check your super settings and returns regularly, as these will ultimately determine how comfortable your golden years will be,” he said.
“Older Australians are more likely to be in a balanced or moderate investment option than any other generation. They tend to take a more cautious approach as they near retirement.
“They’re targeting stability and capital preservation over aggressive growth. There’s no one-size-fits-all strategy; what’s important is knowing where your money is invested and ensuring it aligns with your goals as you get closer to retirement.”
While understanding your investment risk is essential, knowing how your super fund is performing is just as important — and that’s where your annual super statement comes in.
Canstar is encouraging Australians to make a habit of checking their annual statements after a recent survey of more than 3,000 adults found one in five Australians check their super only once every few years, or never at all.
Canstar’s data insights director, Sally Tindall, says it’s time to stop letting those statements gather dust.
“Your annual super statement isn’t a piece of mail you want to be filing away unopened. Instead, use it as your yearly reminder to check in on your retirement fund,” she said.
“Superannuation is one of the most significant assets you will ever own, yet many Australians let it run unchecked without a second thought.”
When checking your annual statement, Canstar suggests sticking to the following checklist to understand how your super fund is performing:
Knowing your investment mix — and checking in regularly — can make all the difference between a modest retirement and a comfortable one. Super may be a long-term investment, but it shouldn’t be a set-and-forget affair.
Read more: Quick ways to help boost your superannuation
IMPORTANT LEGAL INFO This article is of a general nature and FYI only, because it doesn’t take into account your financial or legal situation, objectives or needs. That means it’s not financial product or legal advice and shouldn’t be relied upon as if it is. Before making a financial or legal decision, you should work out if the info is appropriate for your situation and get independent, licensed financial services or legal advice.
Proudly Australian owned and operated