Did you know the super amount of money you’re losing in fees?
Recently, the Murray Financial System highlighted that Australians are paying almost double the fees for their Superannuation of other western countries. Fees are costing us Australians a staggering $20 Billion dollars each a year; on average that is $1,100 taken from each of our super funds!
We can blame the industry and retail funds for such outlandishly large fees, that are generally hidden, not understood nor explained (except in a 100 page booklet that most people never download and read), or we can take control of our Super.
I’m sure you can agree that more often than not, people accept their employer’s superannuation fund without thinking. Generally, Australians never get around to checking how their fund compares, how it’s accumulating, or take the time to roll over their super from previous employment… let alone understanding the fees and the way scores of money can be taken over time.
The truth is, for most of us, our Superannuation is one of the biggest assets we will own (after your house), yet we rarely read our statements and rely on the fact 9.5% of our wages will just build it up enough in time to retire.
The scary thing is we don’t realise just how much money is being taken from our accounts. $20 Billion dollars per year is such a large number, it really is difficult to wrap your head around! The team here at Superannuation Property urge you to find out your Super fund’s annual fees and multiply them by the years left you have until retirement, remembering retirement age is getting older and older as the years go on.
$1,100 of fees each year x 65 years = $71,500
Then take into account how well your money is actually doing with the fund’s chosen investment options.
By that point, if you’re like most Australians, you will feel like you’re trying to crack the Da Vinci code! This is why over a million Australians have moved their super from industry or retail funds, and created their own self-managed super (SMSF): so they can better comprehend and manage their super. With an SMSF, you can invest in assets such as property that you understand. You can plan and control your super with the assistance of financial planners and qualified SMSF experts. Don’t be ripped off. Take control of one of the biggest, most important assets you have, and maximise your Superannuation.
Our advice: Start a self managed super fund, invest money into assets that you understand, obtain assistance from trustworthy professionals and watch it accumulate.