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7 secrets your super fund hides from you

Pascale Helyar-MorayPascale Helyar-MorayPascale Helyar-Moray OAMFeb 28, 2024
[Blog] 7 secrets your super fund hides from you[Blog] 7 secrets your super fund hides from you

Ladies, let's talk about something that affects each and every one of us - superannuation. The day-to-day challenges and responsibilities of life may sometimes make us overlook the significance of securing our financial future. Yes, it's one of the most critical issues with which Australian women must take necessary measures. However, it's not as simple as it sounds. Why? Because super funds might be keeping things from us, and we don't even realise the repercussions of their actions. In this blog post, we will discuss seven significant secrets that super funds hide from women – and it's important to know.

Hidden fees equate to less super savings

It might surprise you that super funds frequently charge excessive and recurring fees, often without notifying you. These charges might be in the form of administration fees, performance fees, and other types of surprise costs, which can significantly impact your super savings in the long run. Taking time to read the fine print will help you realise what the super fund is offering and also what it might not. It's important to know what you are entitled to, such as any additional features of your fund account, including member discounts, bonus interest rates, and other exclusive rewards. As a general rule, you should not be paying more than 1.2% p.a. of your overall superannuation balance in fees. If you are, you need to be asking some hard questions of your fund; expensive doesn't always mean better management. Check out Canstar's super fund fee explanation article for more information.

The gender pay gap puts a dent in super savings

While we strive towards closing the gender pay gap, it's an unfortunate reality that women still earn less than men in Australia. This earnings gap directly impacts women's superannuation savings, with many retiring with significantly lower balances than men. Super funds make few attempts to cater to and assist women in overcoming this obstacle, so women need to be proactive in raising this issue wherever possible. It's up to you to educate yourself on superannuation and seek the necessary advice. The power of compound interest can work - or against you - when it comes to your super balance and fees. Arm yourself with information, and don't underestimate its ability to transform your retirement outcome.

Innovation in the super fund industry (or lack of)

Now, let's talk about innovation in the super industry. Have you ever wondered why your super fund doesn't have an app? Or why their online platform seems 20 years old? It's time for a digital upgrade in the super industry, but don't wait for your fund to make the move. Take action on ways to add to your super balance, like contributing extra or looking into more tech-savvy funds. When considering contributing extra to your fund, the Grow My Money super (and now mortgage too!) cashback reward program is a great way to contribute extra money to your super or mortgage via your everyday shopping. Even when you are not working.

Women face greater challenges

Women face various challenges that men don't when it comes to saving for retirement. For instance, career breaks for child-rearing and other unexpected life circumstances make it harder for women to maintain regular contributions into their super fund. Also, many women have to deal with casual work and unstable income flows that present a real challenge to growing superannuation balances.

Consolidate your funds

Super funds are just like any other product. If you have more than one super account, it's time to consider consolidation. You wouldn't pay two sets of phone bills or fees, would you? Well, it's the same with super funds - why pay double the fees? And also, don't forget about that first super fund from your first job - if you need help locating it, you can use the ATO 'Find my lost super' tool. Consolidation can prompt unwanted examination and negative outcomes for your fund, so take the initiative and do it yourself. You can also check out Moneysmart for helpful tips on consolidating your super.

Mortgage or rent payments

Finally, it’s also important to keep in mind that when planning for your retirement that super funds never budget for mortgage or rent payments. That's right, while they factor in that you'll want to eat takeaways from time to time, or pay for medications, they've assumed that your property is already owned. This is an incredibly big assumption to make, particularly as the level of outright property ownership is at an all-time low in Australia according to the Australian Institute of Health and Welfare. So, understanding where you will be in your property journey by retirement is vital when planning for retirement.

How Grow My Money helps you build your superannuation

Grow My Money is a unique and user-friendly platform that offers you the option to pay off your mortgage or boost your superannuation. It works by helping you earn contributions through your everyday shopping, ensuring regular and consistent payments that accumulate over time. Rather than making a one-time significant payment to your mortgage or super fund, Grow My Money focuses on facilitating small yet steady contributions that can make a significant difference in the long run.

The mechanism is simple. With Grow My Money, when you shop with their partnered retailers, a percentage of your purchase is received as cashback and goes into your super fund. This encompasses a wide range of products and services, from groceries and clothing to insurance and holidays. The beauty is that these are items and experiences you would purchase anyway, but with Grow My Money, a part of this regular spending aids your long-term financial planning by augmenting your super fund. It's a form of cashback, but the money is directed to your super instead of returning to your bank account.

Grow My Money pays into any compatible nominated mortgage or super account in Australia, which means you can connect your current mortgage or superannuation fund to the platform and start accruing contributions. This feature offers considerable flexibility, eliminating the necessity of changing banks or super funds.

Being a free platform, Grow My Money enables you to pay down your mortgage or grow your super effortlessly and helps afford you financial security in your retirement years. What’s innovative about Grow My Money is how it ties everyday spending to retirement savings, making it more of a natural and seamless process. Grow My Money does not replace traditional methods of building your super, like salary sacrifice or personal contributions; it enhances them, picking up where traditional saving falls short.

Understanding and managing your super account is critical for a secure financial future. Whether you’re just starting out in your career or already thinking about retirement, it’s never too early or late to consider your financial strategy. With the right knowledge, tools, and perhaps the guidance of a financial advisor, you can ensure your super account is working optimally for you. Remember, doing the right thing for your super today could mean a significant difference to your quality of life in the future. Stay updated, remain informed, and rely on reliable resources to manage your super fund efficiently. Start building more superannuation today by signing up and shopping with Grow My Money. Join us for free today.

This blog contains general advice only and does not take account of an individual’s objectives, financial situation or needs. Before acting on this general advice, individuals need to consider its appropriateness having regard to their objectives, financial situation or needs and should seek their own independent advice.