The performance of your fund plays a pivotal role in securing your financial future. Superannuation is considered to be one of the primary sources for your retirement, after all. If you find yourself in a situation where your super fund is under performing, it’s crucial to take proactive steps to safeguard your retirement savings.
Assess Performance and Understand Benchmarks:
Begin by thoroughly examining your super fund’s performance over various time frames. Compare it against relevant benchmarks and industry standards. Understanding the specific areas where your fund falls short is the first step towards informed decision-making.
Review Investment Options:
Evaluate the investment options within your super fund. Diversification is key to managing risk, so consider spreading your investments across a mix of asset classes. If your current fund lacks diversity, explore other options that align better with your risk tolerance and long-term financial goals.
Stay Informed and Seek Professional Advice:
Keep yourself informed about market trends and economic conditions. If navigating the financial landscape feels overwhelming, seek advice from financial professionals. A certified financial planner can provide personalized guidance based on your unique circumstances, helping you make informed decisions about your super fund.
Consider Consolidation or Rollover:
If you have multiple super accounts, consolidating them into a single fund can streamline management and potentially reduce fees. Additionally, explore the option of rolling over your funds into a higher-performing superannuation fund that aligns better with your investment strategy and risk tolerance.
Communicate with Your Fund Manager:
Open communication with your super fund manager is essential. Discuss your concerns, seek clarification on their investment strategies, and inquire about potential improvements. Many funds offer educational resources or personalized consultations to help members navigate challenging market conditions.
Monitor Fees and Charges:
Excessive fees can erode your superannuation returns. Regularly review the fees associated with your fund and assess whether they are justified by the services provided. If you discover high fees that don’t align with the performance, it might be worth exploring alternative funds with more competitive fee structures.
Stay Patient, but Act Decisively:
Market fluctuations are inevitable, and short-term underperformance does not necessarily warrant immediate action. However, if underperformance persists over an extended period, it’s crucial to act decisively to protect your retirement savings.
Remember, your superannuation is a long-term investment, and strategic decisions made during challenging times can positively impact your financial future. By staying informed, seeking professional advice, and taking proactive steps, you can navigate the complexities of an under performing super fund and work towards securing a robust retirement plan.
Disclaimer:
The information contained in this publication is for general information purposes only, professional advice should be obtained before acting on any information contained herein. Neither the publishers nor the distributors can accept any responsibility for loss occasioned to any person as a result of action taken or refrained from in consequence of the contents of this publication.