Your annual super statement doesn’t just show how much you have put away for retirement. It has all kinds of important info, like how much you pay in fees, your insurance cover and more - and it's on its way to you right now!
In the next few months, your annual super statement is going to show up, either by mail or email. And while it won’t be the most riveting read of your life, it's definitely worth checking out.
As important as your super statement is to read, it can also be a little hard to know what it all means if you’ve never done it before. If you’re a beginner to super statements, or you’ve always just been too afraid to ask what’s going on, here's how you can make sense of the most important parts of your statement.
1. Your personal details
Your super is your money, so you have to make sure all of your details are up to date, including your home address. If you’ve moved for uni, or just saved up enough to find a place with your mates, ensuring that your new address is up to date might have slipped your mind.
You should also confirm the fund has your tax file number (TFN), and that it’s noted as 'supplied'. If your TFN isn’t supplied, it means you could end up having to pay extra tax on contributions.
2. Your account balance
Even if the rest of your statement doesn’t get you excited, this part should!
Your statement's 'account snapshot' will show your account balance at June 30, 2024 (so, the amount of money you currently have saved up for the future). How does it compare to others in your age group? The table below shows the median balances by age and gender as at 2020-21 (the most recent data available).
3. Money paid into your account
If you head to the 'account summary' section of your statement, you’ll be able to see the ingoing and outgoing amounts of money for your account throughout the year.
Employer super contributions - listed as SG (Super Guarantee) contributions - will likely make up the bulk of inflows (that is, money entering your account).
These contributions only have to be paid quarterly on January 28, April 28, July 28 and October 28, which means that there can be a timing mismatch compared to contributions listed on your payslips.
If the contributions seem off, check out our article on how you can address this with your employer.
Investment earnings are another inflow to your account, and typically shown net of fees. More on this shortly.
4. Money that flowed out of your account
You'll see two main outgoings from your account - tax on contributions (at 15%) and fund fees.
Administration and account-keeping fees are deducted directly from your super balance. However, fees can also be deducted from investment returns- stick around for our explanation of why this is the case!
Good to know - if your super balance is below $6000, admin and investment fees are capped, by law, at 3%.
5. Insurance cover
This shows the insurance payout you'd receive if a claim was made (that is, if you have cover in place). If you'd like to increase the level of cover, contact your fund to discuss your options.
6. Investments and returns
Here’s that explainer we promised! Your statement will show how your super is invested - MySuper accounts, for example, are usually in a 'balanced' option.
What's especially interesting is the investment returns your fund has earned.
Returns will be listed for every investment option the fund offers, and should cover the past three, five and 10 years in addition to the past financial year. You can use this to check if your fund is a consistently strong performer or an also-ran, and decide if you want to stick with it based on its past performance.
The table below shows broad index returns for different options to March 31, 2024. As super is a very long-term investment, it makes sense to focus on five-, seven- and 10-year returns (these are unlikely to differ much from June 30 returns).
If your fund's returns are considerably lower, it could, unfortunately, be trash- and you might need to see what other options are out there for you.
7. Your beneficiaries
Heads up - this is where things get a little heavy.
If there are no beneficiaries listed on your statement, consider making a binding nomination. A binding nomination is a written direction from you to your superannuation trustee that states how you would want some or all of your superannuation benefits to be distributed if you died.
Let’s say you don’t do this, and you unexpectedly pass away (worst case scenario!). Without a binding nomination, the fund trustees are the ones who get to decide who inherits your super - not you.
Not sure how to make a binding nomination? Don’t stress - you can find a binding nomination form on your fund's website that will make things simpler.
8. Your estimated balance at retirement
Some super funds now include an estimate of how much super you'll have by retirement, plus your likely retirement income. And while that might be a long time away right now, it’s still worth checking out - you might be surprised!
Of course, estimates aren’t certainties. However, this could be the part of your statement that spurs you into growing your retirement savings.
If you have any queries about your statement, contact your super fund.
