Summertime superannuation savings are being whittled away by management and insurance fees, faster than it takes to earn them.
As many of us look to take on some extra work in the lead up to Christmas, it’s often the case that if you earn over $450 a month and are over 18 years of age, that you’ll also get an employee contribution of at least 9.5 per cent into your nominated superannuation account.
But what many people don’t realise until they receive their end-of-financial superannuation statements, is that if they do not actively select, or deselect (for that matter), their super fund, their investment option and insurances, that this could cost them their entire Summertime super benefit.
As one woman told Financy, her time spent working for one of the country’s leading travel call centres over Christmas last year allowed her to earn about $90 in superannuation. It’s not much, but every bit helps.
Yet what she showed us was that the entire amount had been reduced to $0 because of management fees and insurances – which she didn’t realise she had selected.
Here’s what you need to do so that you don’t get caught out by the Summertime superannuation sting.
* By default, each super fund will give you a default investment option and insurances.
* It is up to you to “opt out” of default options and to tell you super fund about this in writing. This might be via a form.
* Actively nominate your super fund, or if it works for you, chose your existing super fund, when starting a second job.
* Actively deselect the default insurance and investment options that you do not wish to be paying for.
* Compare the costs of your fees and charges to other super funds.
