3 important reasons you should review your super

Your super is your future. Knowing how it's going now can impact you at retirement.

If you're even a little bit interested in money, you've probably heard plenty of experts banging on about just how important your super fund is. And they're right.

For most people, their super plays a huge role in how they spend their retirement. It can mean the difference between swanky overseas trips or struggling to fund a weekend away. Yet so many of us just let our super simmer away in the background, without paying too much attention to how it's growing and, more importantly, if it could do better.

So, to encourage more Aussies to take an active interest in their super funds, we've partnered with Aware Super to bring you three reasons to review your super this year.

1. Your super might be invested in a balanced option

Super funds invest your money into all sorts of investments, like balanced or high growth options. While you might not be the one choosing the specifics, you can choose how it gets invested.

Most funds might put you in a high growth option early on to help your money grow (and ride out any market fluctuations). For example, Aware Super puts new members into their MySuper Lifecycle product. This investment mix is a 'lifecycle' investment option, which means it automatically adjusts your investments as you get older.

2. You may be in a position to make more contributions

If your savings are looking a lot healthier than normal, it might be worth making an extra contribution (or two) to your super account. There are two ways to do this.

First, salary sacrifice. This is when you ask your employer to pay part of your pre-tax salary directly into your super account. These payments are only taxed at 15% which, for most people, is lower than their marginal tax rate. So not only do you pay less tax, you also boost your retirement savings.

There is a limit though, and exceeding it could mean additional tax. The before-tax contribution cap is currently $30,000 and includes employer contributions, salary sacrifice and personal contributions you claim a deduction on.

However, you can also make after-tax contributions of up to $120,000 if you like. So if you don't want to restrict yourself by immediately taking cash out of your pay, you can just add lump sums to your super account whenever you're in the position to do so. Remember, adding even small amounts can have a big impact in the long run.

3. You may need to review or update your insurance

Most super funds offer some combination of life insurance (sometimes called death and terminal illness cover), total and permanent disability (TPD) insurance, and income protection insurance to members.

These policies are there to help members and their families when things go wrong. So if you've experienced a major life change, then it might be a good time to review your policies and make any required changes.

That way, you can protect yourself and your family if the unexpected happens.

For example, Aware Super lets members apply for up to $5 million in terminal illness and TPD cover, and up to $10 million for death cover. For income protection, you can apply to be insured for an amount between 15% and 87% of your normal monthly income. Members can also apply to increase their cover when they have a key life event such as marriage, divorce, the birth of a child, or taking out a new mortgage.

Learn more about getting your super sorted with Aware Super

General advice only. Consider your objectives, financial situation or needs, which have not been accounted for in this information and read the relevant PDS and TMD before deciding to acquire, or continue to hold, any financial product.

Sponsored by Aware Super Pty Ltd (ABN 11 118 202 672, AFSL 293340), trustee of Aware Super (ABN 53 226 460 365).