Reading your Annual Statement - 5 things to consider
Super is now the second highest form of savings for Australians, exceeded only by housing. Before you file your Annual Statement away, take the time to check in on your savings. Here are 5 key considerations when reading your statement:
1. Compare your balance
Compare your investment balance at the end of 2019/20 to the previous period.
Check 'your super at a glance' to see how much your balance has changed over the year. One of the easiest ways to assess whether you’re on track to be comfortable in retirement, is to use our Retirement Income Forecast calculator. It will help you to project your possible retirement income and explore options for improvements.
2. Assess your insurance
Your Annual Statement sets out your insurance level, cost and waiting period at 30 June 2020. Check that the type and level of cover remains adequate given your circumstances and that you aren’t paying for insurance that you don’t need. If you’ve changed your cover recently, it won’t be reflected in the statement. Log in to MemberAccess to view up to date details
3. Review your transactions
Your Annual Statement lists transactions applied to your account throughout the year. This includes any money received (such as employer and/or personal contributions), investment earnings or losses and any money paid out (most commonly administration and investment fees, insurance premiums, any withdrawals and taxes).
Has your employer paid you correctly? If you’re employed and receive an annual income statement or PAYG summary, you can use this to reconcile your contributions against your Annual Statement.
4. Check your investment details and performance
It’s important to periodically assess the level of risk and return you’re comfortable with and ensure your investment choices are aligned. You can login to MemberAccess and check how you are invested and then compare this against our range of investment options.
Not sure if you’re in the right investment for your circumstances? Send us a message and we’ll reach out to help you with your options.Send us a message
5. Check your fees against investment performance
Most commonly, your fees will comprise of administration and investment management fees. These may differ depending on your account balance and investment option(s). For more information on our fees, visit our fees and costs page.
Do you understand the fees you are being charged?
You will notice a few different fee types in your Statement.
Direct fees* charged directly from the funds in your account. There are different direct fees charged, these are commonly:
- Administration fees, relates to the fees charged to cost of running your account, this is charged as a weekly fee of $1.30.
- Insurance fees, the insurance premiums charged to maintain your cover.
Indirect fees* included in the calculation of the daily unit prices of your investment options (or the value of your investment). They are not charged directly to your account. Examples of indirect fees you may be charged:
- Indirect Administration fee, this is charged at 0.29% p.a. of your average account balance.
- Indirect cost ratio, an estimate of the operating and transaction costs associated with maintaining your investment portfolio.
- Investment fees, the amount deducted depends on which investment option you are invested in. For example, the fee for the MySuper Balanced is 0.64% p.a. of the funds invested in that option.
*For a full explanation of fees, please refer to the ‘Additional Information’ section at the end of your Annual Statement.
Other things to check:
- Have you provided your Tax File Number? If not, you may be charged extra tax.
- Are your contact details up to date?
- Have you received more than one statement? More than one statement means more than one set of fees. Consider whether consolidating accounts will benefit you, but make sure to assess any insurance cover before consolidating.
- Do you have a beneficiary? If you were to pass away, where would you want your super to be paid?
We’re here to help
A dedicated Client Service Manager can always assist you in understanding your Annual Statement and/or optimise your super strategy to stay on track for a great life in retirement.
To book your meeting, contact us on 1800 060 312 Monday to Friday between 8am to 8pm (AEST) or via email to firstname.lastname@example.org
This information is general information only and does not take into account your individual objectives, financial situation or needs. Accordingly, before taking any action, you should consider whether it is appropriate to you, having regard to your objectives, financial situation and needs. You should obtain a copy of legalsuper’s Product Disclosure Statement (PDS) which is available by contacting legalsuper or via its website at legalsuper.com.au before making a decision. Past performance is not a guide to future performance