In August, 13 super products failed the Aus government's test...
Background: Earlier this year, the government introduced a new performance test for superannuation funds called the Your Future, Your Super test. It came into effect on 1 July.
What happened: The test reviews the performance of default super products each year. If the super funds don't pass, they need to tell members that they are underperforming.
What else: In August, 13 super products failed the test...and 1.1 million Aussies got a letter saying just that. But here's the punch line: just 68,000 Aussies actually changed super funds after getting the letter.
💡This is a case of instant gratification vs delayed gratification. Instant gratification is the idea that we forego a future benefit to get a less rewarding, but more immediate, benefit.
💡 For most of us, our superannuation will be our largest financial asset...but it's locked away until retirement age. So, making changes to your super fund is the ultimate delayed gratification - we're talkin' 50 years away!
💡So, it's not surprising that only 7% of Aussies moved super funds after receiving this letter of underperformance...But Flux fam, if you happen to be in the 93% that did nothing...let this be your wake up call ⏰
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