Are you stapled to the right fund?
There could be hundreds of thousands of dollars at stake depending on the performance of the fund you’re stapled to.
A powerful new superannuation rule came into effect at the beginning of this month: your active super account was ‘stapled’ to you.
This could be a good or bad thing depending on the performance of your fund. If you’re with smartMonday, which is a top-performing super fund, then you’re in good hands. If you’re with a dud fund, then you could be seriously missing out.
That’s because being stapled to an underperforming fund could result in an average wage earner retiring with $309,000 less* at retirement. An individual in a high-performing fund would have a nest egg at age 67 worth around $717,000 compared to $408,000 if they remained in an underperforming fund, according to analysis by the Australian Institute of Superannuation Trustees.
So, if you have any doubt, look into the performance of your super fund to make sure it will deliver for you over the long term. If you have a MySuper account, a great place to start is the YourSuper comparison tool the Australian Taxation Office recently released, which compares funds’ net returns over seven years.