If your goal is to proactively grow your Super savings by tens of thousands of dollars by the time of your retirement, rather than ignore it and hope it's enough when your retirement comes around, it's time for you to get involved and take our Wealth Fundamentals Super Challenge and learn about, or even better, get involved with your superannuation investment strategy.

In this, the second of our “Super Challenge” series, we challenge you to investigate the different investment options available to you.

If you, like most Australians¹ have your superannuation funds invested in your employer's Default Superannuation Fund Option, you could be missing out. With continued poor investment returns predicted for some Super Funds ², you may be able to boost your super saving by changing your investment options.

Look at the difference

The graph above shows the difference in savings at retirement when using a Conservative vs High Growth Investment option based on the ASIC Super Calculator³

Here you can calculate your potential superannuation using different investment options using the ASIC Superannuation Calculator:

Now that you have calculated what is possible, it's time to get involved with your Super.

What you need to know
Different Superannuation Funds have different rules and charges associated with changing Investments Options, so it’s important to check before you make any changes.

You can decide how much of your super is moved to a different investment option. For example, you can move your whole balance and future contributions, nominate a percentage of your current balance, or only change future contributions to a new investment option.
There may be limits on how often you can switch your investment options.
Your Super Fund may charge you to change your investment options.

Changing investment options within your Super Fund can have significant implications for your retirement savings, and this will require professional advice and a clear understanding of the options available to you. If you would like to know more about your investment option within your Super Fund please contact us on (07) 3720 1299 or email admin@wealthfundamentals.com.au

Matthew Lane and Chris Lane are Authorised Representatives with Lane Moses Pty Ltd. Lane Moses Pty Ltd, ABN 56 092 186 117 trading as Wealth Fundamentals and its advisers are Authorised Representatives of Fortnum Private Wealth Ltd ABN 54 139 889 535 AFSL 357306.

The information (including taxation) contained within this document does not consider your personal circumstances and is of a general nature only - unless otherwise stated. Wealth Fundamentals strongly suggests that you should not act on it without first obtaining professional advice specific to your circumstances.

This publication cannot be reproduced in any form without the express written consent of the author.

1 Around 80% of all superannuation money is invested via the Default Investment Option, which is usually a Balanced Option. http://www.superguide.com.au/boost-your-superannuation/investment-performance-were-the-best-super-fund-no-were-the-best

2 https://www.amp.com.au/news/2016/july/eofy-super-returns-how-have-markets-faired

3 Key Assumptions:

Graph is an estimate only – returns may vary and are not guaranteed.
Assumed earning rate is 4.2% p.a. for Conservative Investment option, and 6.6% for High Growth Investment option (before tax and fees) with retirement at 67 years of age
Assumes super contributions of 9.5% p.a based on assumed salary of $100,000 (with starting balance of $25,000)

Ongoing administration fees assumed to be $50 p.a Further disclaimers and assumptions for this Graph - https://www.moneysmart.gov.au/tools-and-resources/calculators-and-apps/superannuation-calculator