Four million Australians neglect their super funds

Only 26% assessed their account within the past three months.

Around four million Australians have never reviewed the performance of their superannuation fund, leaving their retirement savings unchecked.

A survey of 1,010 Australians found that 19% have never compared or reviewed their super fund's performance, according to new research by Finder.

Another 16% said they last checked their fund more than a year ago, whilst only 26% had reviewed it within the past three months and 22% within the past year. Around 18% said they do not have a superannuation fund.

The findings come as new superannuation rules took effect on 1 July.

Under the changes, employers will pay super contributions more quickly, workers can contribute more of their pre-tax income to their super, and super will now be paid on government-funded parental leave.

Finder personal finance expert Sarah Megginson said many Australians were not paying enough attention to their retirement savings.

She said superannuation should not be treated as a "set and forget" investment, as regularly reviewing fund performance, fees and investment options could improve retirement outcomes.

The Association of Superannuation Funds of Australia estimates that a single person needs around $440,000 (A$630,000) in superannuation by age 67 for a comfortable retirement, whilst couples need about $510,000 (A$730,000).

Megginson said choosing an underperforming fund or failing to review it regularly could reduce retirement savings by hundreds of thousands of dollars over time. She urged Australians to compare their fund's performance each year, check fees and ensure their investment strategy matches their age and risk tolerance.

She also said people should start engaging with their super early, as it becomes harder to make up for lost investment growth when approaching retirement.

($1.00 = A$1.43)