Many Aussies don’t know how their superannuation is invested, with some still in their fund’s default option. (Source: AAP\/Getty) <\/p>\n
Australians could be missing out<\/a> on as much as $200,000 at retirement<\/a> by making one common superannuation mistake. Superannuation<\/a> is a long-term investment, but many Aussies simply \u201cset and forget\u201d and overlook it.<\/p>\n Only 46 per cent of Aussies have actively chosen how their super is invested<\/a>, new findings from Colonial First State revealed. Meanwhile, 25 per cent of people admitted they are still in their fund\u2019s conservative default option, while 29 per cent don\u2019t know how it is invested at all.<\/p>\n Most super funds will offer a range of investment strategies<\/a>, ranging from lower to higher growth. They can have names like growth, balanced and conservative, which cater to different risk tolerances and investing timeframes.<\/p>\n RELATED<\/strong><\/p>\n Colonial First State’s head of technical services, Craig Day, said there can be a huge opportunity cost to being disengaged with your super<\/a>.<\/p>\n \u201cWhen people stay in the status quo, whether that\u2019s remaining in a conservative default option or a single asset, they risk missing out on significant long-term growth,\u201d he said.<\/p>\n \u201cThe consequences may not be visible now, but compound over time.\u201d<\/p>\n According to Day, a 25-year-old who shifted into a higher-growth option early in their working life and then moved to a balanced option later could retire with around $200,000 more than someone with the same contributions who stuck with a balanced option the whole time.<\/p>\n \u201cThe message is clear: being disengaged with your super comes with an opportunity cost, particularly if you\u2019re not invested in the appropriate investment option,\u201d he said.<\/p>\n \u201cSmall decisions, made early and reviewed over time, can materially lift retirement wealth<\/a>.\u201d<\/p>\n