How to give your super a check-up

Setting time aside to make sure your super is up to scratch invariably pays off.

Basically, you want to know it's performing well, your insurance is in order and all your personal details are correct and up to date.

Here's a checklist to help you along.

1. Consider consolidating multiple accounts

The first thing to check is whether you have multiple accounts.

"If you're not keeping them open for a reason, consolidate them," advises Xavier O'Halloran, the chief executive office of advocacy group Super Consumers Australia.

"It's a massive drain on your savings."

He says about four million people have two or more accounts, with most accumulated each time they started a new job. 'Stapling' was introduced in 2021 requiring employers to use a new employee's existing super account for contributions unless the employee chooses otherwise.

"We know people are still being encouraged to set up a new account when they change jobs via different onboarding platforms and software, and that means they are wasting a lot of money on fees and insurance they might not need."

2. Compare performance

It's important to compare your fund's performance.

"I encourage people to have a look at how their fund stacks up against those in the rest of the market," says O'Halloran. The Australian Taxation Office (ATO) has one of the better comparison tools for that.

"It's a good starting point to see what kind of long-term returns you've got and what kind of fees you're paying. You want to make sure you're getting good value - a good rule of thumb is to check it against the average for all funds."

While the comparison tool only covers default MySuper products, it's where most people have their money invested.

O'Halloran says the good thing about the comparison tool is that when you input your balance it will tell you exactly how much you'll be paying in fees in dollar terms, so it's easier to make comparisons to figure out exactly what you're paying.

"You can also find out more about each product's investment strategy. You can click through the links to look for something called a product dashboard. It will have a breakdown of what the fund is invested in and how the risk for each product stacks up."

There are two ways to access the comparison tool.

"You can get a non-personalised version of the tool that doesn't use your own data. If you log into the ATO, it automatically puts in your account balance information and will give you a more accurate picture," says O'Halloran.

For the personalised version, log into ATO online services through myGov. Go to the super drop-down menu, select information, then select YourSuper comparison. The tool will show your current super accounts alongside other MySuper products. It also provides links to help you consolidate accounts.

3. Check your insurance cover

Check your death and disability insurance. Most people don't know which life insurer their fund uses or what policies they have.

"Find out what you've got," says O'Halloran. "The easiest way to do that is to check statements from your fund. If it's still not clear, call the fund. They should be able to tell you what's actually in the policy."

Disability cover can be especially tricky.

"There are policy carve-outs if you've been out of paid employment for a period of time, or if working casually or part-time you might face tougher, more restrictive conditions and they might not pay out under all circumstances."

Check your cover is active because it can be turned off if your super account is inactive for 16 months or longer. It's also important to make sure all your personal details are accurate and up to date, and you have nominated your beneficiaries.

"If you haven't made any nominations, it can cause big delays for your family while the fund figures out who the money should go to. It's meant to go to someone who is a dependant, typically 
a spouse or your children.

"If there's no nomination, the fund has to conduct a thorough search to make sure there's no one else who could potentially claim on it. It can lead to delays and people missing out for long periods of time and cause financial stress."

The Federal government's Moneysmart website has a tool that allows you to compare the major super funds' insurers by the percentage of claims they pay out across death, total and permanent disability and income protection, the length of time they take, and the number of complaints they've had.

4. Think long-term

Focus on the long-term nature of super.

"Don't be chasing last year's winner or get too worried when there's a downturn in the market," says O'Halloran. "Investing in a growth investment option is typically for when you're younger and you can ride out some of that market volatility.

"Basic housekeeping is important. When most people join a fund, they're doing it through their employer. They're totally reliant on what the employer puts on the form, which can lead to problems down the track if the details are wrong.

"Make sure your fees are in line with the value you're getting from your fund compared to the other super funds. The message is: do not chop and change based on what's happened in the past six or 12 months. It's a longer-term game than that."

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