Clueless about how your super is invested? You're not alone
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On the whole, the Australian superannuation system does a decent-ish job at being easy to understand. The payments themselves are set-and-forget, the rules are relatively clear-cut, and the central ethos of 'save money now so you can live well once you stop working' is one the majority of us get around. Compared to other parts of the finance and wealth world, super is a walk in the park.
This vibe extends to funds too, which, generally, do a good job of explaining things to their members. If you're ever confused about something specific to do with your super, there's a good chance you'll be able to find an explanatory video or article on your fund's website (or in a wonderful article written by yours truly).
What's the problem?
Where this somewhat falls apart is when it comes to talking about how your super is allocated. As you probably know, funds offer different options for you to invest your super, with each given a relatively simple, nondescript name. The majority of Australians have their super in a 'balanced' fund, but other options include growth, high-growth, conservative and cash.
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To a certain extent, these options do what they say on the tin, but what you're actually invested in is much less clear. A recent survey by Superhero found one in five Australians have no idea how their super is allocated. This statistic gets worse among younger workers, with research by ASIC indicating nearly half of Millennials admit they are not knowledgeable about maximising their super.
What you can do about it
So if you want to know exactly what your fund is investing in, read on:
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