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Majority of Aussies ‘set and forget’ super

Yasmine Masi3 November 2023

New research from Mozo has found the majority of surveyed adult Australians have employed a ‘set and forget’ approach to their superannuation investment allocations.

Approximately 68 per cent of Australians polled said they had never changed their allocations, 20 per cent had never changed anything to do with their super fund, 15 per cent were uncertain as to the type of super fund their savings were in and four per cent did not know what the terms SMSF, industry super fund and retail super fund meant.

Rachel Wastell from Mozo said Australians have the opportunity to improve their retirement position if they engaged more with their super.

“Mozo research found that close to 70 percent of Australians have never changed the investment allocations in their super fund in line with their life stage and risk appetite, even though this can have a dramatic impact on overall returns,” she said.

“Super is one of the most elusive personal finance products to manage, as although it technically belongs to you, you can’t access it until retirement age.

“This is why taking the reins on what you can control, such as investment allocations, is important to consider when aiming to optimise your super returns.

“It’s crucial to start research into how to make the most of your super fund as early as possible in your career, and that includes reviewing your investment allocations, checking the fees and charges attached, and reviewing the performance of the fund.

“Conversely, it’s also vital to review your super as you approach retirement, because you no longer have time to recover from any investment losses.”

The results come as compulsory employer superannuation contributions as part of the Superannuation Guarantee (SG) are set to increase by half a percentage point every financial year to 12 per cent in 2025. Mozo’s research also highlighted the importance of super engagement with this rising amount of superannuation alongside the nation’s ageing population.

“As our life expectancy continues to increase, a healthy superannuation balance is vital, and the main way to do that is to regularly review your fund choice and your investment allocations,” Wastell said.

“It can seem like a much easier option to just go with the flow, especially when you’re not due to retire for another few decades.

“However, you might be missing out on substantially higher superannuation returns, you could be taking more risks than you can afford to, or you could end up paying substantially higher fees than necessary.”

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