Understanding your super
For many of us, our superannuation will form a large part of our retirement nest egg. And yet most of us will not take the time to truly understand our own superannuation fund. This can have a detrimental effect on your future retirement plans.
For example, did you know that a 1% difference in fees paid can lower your super balance by up to 20% over a 30-year period?
The difference of investing $200,000 in a defensive fund over a balanced fund option over a 20-year period can mean a $340,000 loss to you.
A great majority of super funds out there are pretty much all the same. They invest in the same assets, from Australian and international equities, to commercial property, Gov’t and corporate bonds to various cash funds and more. Typically, choosing one fund over another is neither here nor there when it comes to the underlying assets of the fund and their long-term returns.
What does effect long term returns are:
- Total fees paid
- Asset mix (generally – shares / property / fixed interest / cash)
- Insurance premiums paid
It is important that all three areas are optimal for your purposes and long-term health of your super fund.
Retire to Asia superannuation health check
Retire to Asia, in conjunction with our partner company Alpha Financial Services can provide you with a superannuation health check, to ensure that:
- You are not paying too much in fees
- The asset mix is right for you and that the returns are appropriate for your level of risk, and
- Any insurance that you hold inside of your super fund is appropriate for your needs and of good value
By understanding and controlling these three very important areas of your super fund, your super fund should grow to its fullest potential.
If you would like to know more about our superannuation health check service, or you would like to speak with one of our staff members, please feel free to contact us at firstname.lastname@example.org or call us on 1800 830 763.