Super Good but Ignored

SuperWiser
March 2, 2023
3:47 pm

Improved Engagement

There are more people engaging with their super nowadays, partly because of the increased value involved. The rate of contribution will year by year increase to 12%: sitting currently at 10.5%. In past years where it took 20 years for the average worker in Australia to accumulate $100k, this time span is now significantly reduced. In essence, after 20 years in the workforce, your super balance should now be in the range of $150,000 to $200,000. On the other hand, if you had better managed your super as a wealth creation asset, it could have been much more than that.

Common Mistakes

Many people have made the same mistakes time and again since the introduction of super. The system is not as complicated as most people say but it does have controls.

Young people starting out in employment have a lot to organise and some miss setting their super account up properly. A key component is providing your tax file number to your product provider.

In the past, many people had multiple accounts and even lost contact with some accounts. The Government has been active in reviewing their controls to minimise the number of people with multiple accounts and in particular with insurances in each of these accounts.

Many people are not investment specialists and assume their product’s investment default is the place to be. The more you learn about investment defaults the more concerned you might become about the sustainability of their returns and also how it would have been easier to make a decision which would have improved your asset balance noticeably.

There is significant publicity about the quality of advice and also the cost of said advice. Indeed the government has tightened controls around advisory fees within super and taken measures to reduce the cost of advice.

Many people have endeavoured to provide their own advice, some being successful but others not.

Arguably insurance becomes a more significant cost from age fifty onwards but most people do not review their need for insurance.

Essentially access to the right advisory service at the right time can increase your projected income in retirement by 10 to 20%, assuming you have a reasonable time horizon. If you are closer to retirement and have already accumulated a sizable asset, it is more about defending the asset you have accumulated and again with the wrong exposure to growth assets you can find you lose 10 to 20% of your asset just when you were thinking of retirement.

Client Portal

Most people do not want what is known as holistic financial advice. Most people want affordable advice limited to their super account. The majority of people do not have a complicated situation to manage and their assets are restricted to their home, their bank account, their super asset and the relevant liabilities. Ideally, if there is a client portal using modern technology, you can access the advisory service 24/7.

SuperWiser is such a client portal. It is automated and is specifically tailored to provide limited advice to Australian workers and their super asset. SuperWiser has a wide reach in that it can service employer super and also employees exercising choice of fund. The product database within SuperWiser has around 40 products between employer super, personal retail and industry funds.

Service Model

On initial registration, SuperWiser has to ask a number of questions as required by regulation but also as part of our intention to deliver superior advice at an affordable price. SuperWiser will also show you an early comparison, depending on your personal circumstances on how you can benefit from the advice to be provided. After this initial comparison, assuming you proceed, the application will gather your final details to prepare all documentation.

The fee for initial registration is $220 including GST. The services delivered at this stage would assist you in understanding your asset, the establishment of your goals and objective for your asset, confirming your product and advice around contribution and investment strategies.

Your record is then in a secure database and you are part of an ongoing service model. You will be proactively advised if you need to update anything from an advice perspective. Future updates on strategies affecting your balance will be around $110 including GST.

Importance of Regular Super Contact

Put simply, if you pay regular attention to your super, you will find you will exceed your own expectations. This does not mean a serious interaction with your super every month but more likely a quick look at your super account a few times a year and formally reviewing your performance against forecast every 1 to 2 years.

If you set a defined goal for anything, you have immediately increased the likelihood of success. SuperWiser assists you in monitoring progress by giving you milestones.

What Next?

Start your free Super Review.

For your information, SuperWiser is owned and funded by Super Simpler Pty Ltd, a private company with 5 individual owners. SuperWiser has no commercial relationship with any product.

This document was prepared and issued by Super Simpler Pty Ltd (ABN 74 150 240 421) a privately-owned company operating as a Corporate Authorised Representative (CAR No. 468 201) of AXIS Financial Group Pty Ltd (ABN 21 092 889 579, AFSL 233 680). The information contained within it is not advice. It provides general information only and does not take into account your individual objectives, financial situation or needs. You should assess whether the information is appropriate for you and consider talking with your financial adviser before making an investment decision. Information in this publication, which is taken from sources other than Super Simpler, is believed to be accurate. However, subject to any contrary provision in any applicable law, neither Super Simpler, nor its employees and directors, provide any warranty of accuracy or reliability in relation to such information or accepts any liability to any person who relies on it.