When thinking about your financial future, your superannuation is often one of the most overlooked assets — but it shouldn’t be. Even though it may feel like money that’s locked away and out of sight, your super is your money. One day, once you meet a condition of release (such as reaching retirement age), you’ll have full access to it. So it’s worth making sure it’s working as hard for you as you do for it.

What Is Super and Why Is It Important?

If you’re currently working, your employer is required to make mandatory contributions into your super account — currently at 11.5% of your salary. Over time, with the power of compound interest and investment growth, this will likely become one of your most significant financial assets.

But how well your super performs and grows depends on how engaged you are with it. Here are key areas to focus on:

---

1. Know Your Fund and Investment Options

Not all super funds are created equal. You should regularly review:

• Which fund you’re with – Are you happy with their performance and service?
• Investment options – Super funds usually offer different portfolios like conservative, balanced, or high growth. Do your current investments suit your risk profile and long-term goals?
• Performance history – What’s the past performance of your chosen investment option? Past returns aren’t guaranteed, but they give you a good idea of how the fund is managed.
• Investment mix – Check how your current balance and future contributions are being allocated. Are you comfortable with that allocation?

---

2. Understand the Fees You’re Paying

Super isn’t free, and the fees can add up. Make sure you’re across:

• Administration fees
• Investment management fees (also called Indirect Cost Ratios or ICRs)

These may seem small but over decades, even a 0.5% difference in fees can significantly reduce your final balance. Consider comparing your current fund’s fees with others on the market.

---

3. Check Your Insurance Cover

Most super funds automatically include default insurance, which typically covers:

• Life insurance (death cover)
• Total and Permanent Disability (TPD)
• Income protection (optional)

Ask yourself:

• How much cover do I have?
• How much am I paying in premiums?
• Are these covers suitable for my needs?

In some cases, your insurance premiums may be eating into your super balance unnecessarily. You might benefit from reviewing your insurance with a qualified financial planner.

---

4. Track Your Contributions

Your super account should receive regular contributions from your employer. It’s worth checking that these payments are being made and are on time. You can usually find this information via your super fund’s app or online portal.

Also consider whether you’ve made a beneficiary nomination (binding or non-binding). In the event of your death, this determines who receives your super — and potentially any attached life insurance payout (which could be significantly higher than your super balance).

---

5. Ways to Boost Your Super

There are several strategies you can use to grow your super faster:

• Salary sacrifice – Arrange with your employer to contribute extra pre-tax dollars to super.
• Personal deductible contributions – Contribute after-tax money and claim a tax deduction.
• Spouse contributions – You may receive a tax offset by contributing to your spouse’s super.
• Government co-contribution – Low to middle-income earners may be eligible for up to $500 in co-contributions annually.
• Downsizer contribution – If you’re 55 or older and selling your home, you may be able to contribute up to $300,000 from the proceeds into your super without affecting contribution caps.

---

6. Accessing Super Early – In Limited Circumstances

One downside of super is its lack of liquidity — you generally can’t access it until you meet a condition of release. However, in special situations, early access may be granted, such as:

• Severe financial hardship
• Terminal illness
• Compassionate grounds (e.g. medical treatment or funeral costs)
• Permanent departure from Australia (for certain visa holders)

While it’s not an everyday savings account, for some, super can act as a financial safety buffer in emergencies — just remember access is limited and regulated.

---

Final Thoughts

Your super might feel distant now, but one day it’ll likely be one of your most important financial resources. Regularly reviewing your fund, investment options, insurance, and contributions can make a significant difference to your retirement outcomes.

---

Disclaimer:
This article is for general informational purposes only and does not constitute financial advice. You should speak to a qualified financial planner before making any decisions regarding your superannuation or insurance.