If you could add $61,000 to your super fund in 10 years, would you do it?
Of course you would, however by choosing, or defaulting into, funds that underperform and charge high fees, you may be leaving money like that on the table.
Super is the biggest investment most Australians will ever make, yet too many unknowingly behave as if they are starring in the TV show, “Married at First Sight.” They commit to something they haven’t gotten to know or understand.
It can be a very expensive error. The recent Productivity Commission estimated that super investors would gain $3.9 billion yearly by choosing better-performing funds and reducing fees by consolidating accounts. That would give a 55-year-old today an additional $61,000 by retirement, and a new job entrant an additional $407,000 when they retire in 2064.
Here’s a few ideas on how to send some of that money your way:
Finally, don’t make yourself crazy. Constant tinkering is more likely to hurt than help, but do get to know your super and increase your odds of a decades-long blissful union.
Written by Robin Bowerman
Head of Corporate Affairs at Vanguard.
29 January 2019
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