The ins and outs of the organisation looking after your all-important retirement nest egg: your superfund.
The core goal of superfunds is to protect and increase the savings of their members, so that we all have sufficient money available for retirement.
In total, they manage almost $3 trillion dollars across Australia. This money belongs to the people who earnt it, but the superfunds are responsible for managing it.
So… what do they actually do with all that money??
These superfunds invest the money into a range of asset classes, both in Australia and overseas. They have teams of finance hotshots investigating potential investment opportunities, trying to determine the best place to allocate your savings.
The goal is to increase the value of these investments over time… if they can generate positive investment returns, our savings will grow.
Can I choose where my money is invested?
Because superfunds manage other people’s money, they provide each member with options regarding the style in which their money is invested. These options are known as investment or portfolio strategies. You can select your preferred investment strategy by logging onto the website of your super provider.
Investments that look to make a higher return typically also come with a higher risk, so a tradeoff has to be made.
Do you pursue higher growth investments but risk losing some of your savings? Or do you look to play it safe and secure what you have? The choice is yours.
Super is riveting stuff, how can I learn more??
To know more about this wonderful world of super, check out our 101. Or if you already know your stuff, super quick super tips is the go.