Have you been stapled to your super fund?
A SURVEY conducted on behalf of Industry Super Australia has found that 80 per cent of Australians do not know about super stapling.
Stapling means that a worker who doesn’t pick a super fund themselves stays with that fund even if and when they change employer.
The stapling reform is a positive step that stops workers being put into a new fund every time they change jobs. They end up with more funds than they can keep track of and pay fees to each of these funds.
Stapling prevents this.
There are a number of default funds for workers who don’t pick a fund themselves. These are called MySuper funds.
MySuper funds all undergo a performance test. Unfortunately, not all MySuper funds perform well. Some even perform very badly.
So, while being stapled to a fund is good if you don’t want to pick a fund yourself, you do need to make sure you’re not stapled to a dud fund.
Arguably, dud MySuper funds will be forced out of the industry eventually, but by then you will have lost money and lots of it.
So, even if you super bores you to tears, make an effort and make sure you’re in a good MySuper fund.