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$3.4 trillion of Aussies’ savings to take major hit

·Personal Finance Editor
·2-min read
People cross a busy intersection in Sydney's Pitt Street. A person removes $100 notes that they were saving in a wallet.
Aussie superannuation savings are expected to take a hit. (Source: Getty)

Australians have $3.4 trillion in superannuation savings, but new research shows it will have taken a major hit in the 2021/22 financial year.

The Rainmaker MySuper Index for single-strategy, default workplace superannuation products - the most common super product - is expected to have lost 2.8 per cent for the 2021/22 financial year.

This is the fourth-lowest annual full-year (FY) result in 35 years and the sixth time since Rainmaker began keeping records that default superannuation has delivered a negative result.

However, it’s not quite as dire as it may sound.

The disappointing results follow the record-breaking 2020/21 returns of 19 per cent.

Despite the low result for this FY, benchmark returns are a strong 6 per cent per annum over five years and 7.9 per cent per annum over 10 years.

According to Rainmaker, the MySuper index has delivered a negative FY result on average once every six years.

Time to check on your super

Superannuation is one of those things not many Australians pay attention to until they are near retirement age.

But it's important to remember that it is your money - your savings - and you have a right to decide what happens to it.

As of July 1 this year, 10.5 per cent of your paycheque is automatically put towards your retirement savings.

Your money is invested for you by your superannuation fund, usually in the standard MySuper products. But you can change this, if you want, for no charge.

There are different super funds to choose from that meet different needs.

For example, If you want to make sure your money isn’t funding the fossil fuel industry, consider switching to a sustainable fund.

Depending on your age and super balance, another fund may be the best option for you.

The ATO’s super comparison tool can give you a breakdown of the best fund for you, depending on your age and average super balance.

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