Why Starting a New Job Is the Best Time to Figure Out Your Super

Know your money.

This post is presented in partnership with Aware Super.

We've probs all been there. You're starting a new job, you get all the paperwork signed and the HR department wanna know your super details so that you can start earning your retirement dosh. Well now's probably the best time to reconsider if your current superfund is your perfect fit.

By being aware of how your super works and how to make the most of it while you’re still young, you will thank yourself later down the track.

If you're changing industries, looking for a better rate or lower fees, your latest career change is the perfect time to figure it all out, here's why.

Understanding super.

When you start a new job and your boss asks for your super details, it’ll save you a lot of confusion by knowing what it is and why it exists.

Super, or superannuation, is money that is put aside by your employer throughout the duration of your working life so that you have some dough to live off when you retire from the workforce.

Each pay cycle, a percentage of your pay is put away into a super account by your employer.

The super account is managed by a company that invests that money overtime to give you a nice sum of money when you call it a day. You can find out everything you need to know about how superannuation works in Australia here.

We broke down super and a whole bunch of other tricky financial terms in this video, so check it out if you’re in need of a finance vocab boost.

Aligning your values.

If you’ve had another job before, you may have already been assigned a Super provider by that employer, but you can always change to another or choose a specific one if this is your first time entering the workforce.

When it comes to choosing a super fund, one thing you should keep an eye on is the exact values that a specific fund might be into.

These will really depend on super fund to super fund, but many can have investments in or care about the environment, housing or energy sources.

One thing you’ll need to do is figure out what values are the most important to you and use that to help you choose your perfect super fund.

Check out this article on values and social impact if you’re struggling to know what your own values are.

Aware Super for example was the first major fund to be classified as tobacco-free by Tobacco Free Investments and also deliver top performance by investing in ways that will improve our communities, economy and environment while divesting from the things that won’t – such as tobacco and thermal coal. You can read more about their approach to investing here.

 

Watching out for fees.

You may or may not know, but super funds charge a fee to manage and invest your money.

In a Finder survey of over 8,500 Australians, 17 per cent admitted they don't know whether they're getting good value for money from their super fund, so you need to know what kind of fees your super provider is charging you and how much.

There are lots of different fees associated with super, so keep an eye out for a ‘total annual fee’ and make sure it's inclusive of administration and investment fees.

Knowing if your fund is worth it.

When it comes to picking a super fund for your new job, one thing to always consider is that fund’s long-term past performance.

Just because a super fund ticks your boxes for values, fees and access doesn’t mean it’s going to get you want you need long term.

So, before fully committing to a super fund, look back on its history and performance beyond the last year or so. Short-term fluctuations are okay, but you’re investing in your retirement, so any major red flags are a no-no.

It's also important to understand that past performance doesn’t really guarantee future performance—there are no guarantees!

For example, Aware Super won Money Magazine’s 2021 best super fund of the year, so you know they’ve got a good track record.

Checking for life insurance.

One of the best things about Australian super funds is that a lot of them also offer up and include life insurance in their cover, TPD insurance and even income protection.

In fact, over 70 per cent of Aussies have life insurance through their super, so it might be something to add to your non-negotiables list when looking for a fund to stick with.

Knowing how to access your super.

Your super is real money and just like you would your bank account it's important to keep track of your balance, returns, and fees! Look for a super fund that makes it easier to monitor your super balance and keep you regularly updated via email, post or an app.

Apps are also great can also make it easier for you to consolidate multiple super accounts or boost your super with additional contributions when things are going well so it's worth checking if your fund has one.

Plus, the Aware Super app Is an award-winning app so be sure to check it out*.

And that’s it! Now go forth and crush that new job while your super does its thang for your future.

If you’re looking for a new super fund and want something that ticks all your boxes above, check out Aware Super and start investing in your future.

*The Aware Super app was awarded  Gold at the 2021 Sydney Design Awards in the Digital - Expanded Service or Application category; Winner at the 2020 Good Design Awards Australia in the Digital Apps & Software category and was awarded Gold at the 2019 Sydney Design Awards in the Digital - New Service or Application category

Header Image: Daniel Norris via Unsplash