[ New Product Announcement ]

Following your feedback, we are planning to launch a superannuation product. The superannuation feature will be fully integrated into the existing app, using the current six portfolios when it becomes available in late March 2018. 

For those who are interested or want to be updated on its release, you can pre-register here: https://super.Raizinvest.com.au

By Alison Banney (Finder.com.au)Superannuation isn’t everyone’s cup of tea. Let’s be honest, it’s boring and complicated and it’s something that young Australians won’t need for another 20, 30 or even 40 years. However, your superannuation is likely your largest asset, and while there’s no need to know every word of your fund’s PDS, there are definitely a few things you should know.

1. Where your money is invested

Australians are becoming more and more aware of the footprint they’re leaving on our earth. We’re seeing more people use reusable coffee cups, hearing more of our friends and colleagues commit to eating less meat and seeing more people bring their own shopping bags to the grocery store. But what about your super?

Your superannuation is likely to be the largest investment portfolio you’ll ever have and you could be supporting tobacco companies, ammunition manufacturing or coal-seam gas extraction without even knowing it. You should be able to find the details of where your money is going on your super fund’s website, although you may need to do some digging. If you don’t like what you find, don’t hesitate to switch to a fund that aligns with your values.

2. Your insurance cover

If you’re young, healthy and fit you might not consider life insurance as something you need. But believe it or not, you’re almost certainly paying for it through your superannuation. Most super funds will provide you with automatic Death and Total and Permanent Disablement (TPD) cover when you open a policy, and some will also include automatic Income Protection insurance.

These insurance policies are almost always opt-out rather than opt-in, meaning that unless you specifically opt-out of your policy you’ll be paying fees for this cover, whether you want it or not. Have a look at your latest super statement or read your fund’s PDS online to see what insurance you’re paying for, and decide whether it’s right for you.

3. What fees you’re paying

While you’re poking around your latest statement, you should also take a look at how much you’re forking out in fees. You might already know what admin fees you’re paying, but what about the rest? There are also investment fees and a fee for indirect costs (known as the Indirect Cost Ratio) charged to most accounts, and these can vary greatly between funds.

The difference in fees between funds might not seem like a big deal when you’re young, but it can have a huge impact on your superannuation balance by the time you’re ready to retire.

4. How your fund has been performing

Because of the compulsory nature of superannuation, many people think that all super funds perform equally, but this is simply not the case. It’s important to think of your superannuation as one large investment portfolio. It doesn’t guarantee positive returns, it relies on the skills and knowledge of the fund manager to invest in assets that will provide positive returns. And some are better at this than others.

When applied to a balance of $100,000, the performance becomes quite serious. You should be able to find your fund’s portfolio performance figures on its website.

Superannuation is incredibly complex, and it can be overwhelming to try and understand every tiny detail of your fund. Instead, use these four areas as a starting point from where you can learn more about your super.

Please also check out our blog on new rules for super contribution as voluntary contributions may now be tax deductible.

Important Information

The information on this website is general advice only.  This means it does not take into account any person’s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product.

The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information.

Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz.  

Past return performance of the Raiz product should not be relied on for making a decision to invest in Raiz and is not a good predictor of future performance.