Superannuation statements will soon start arriving in letterboxes. What things should you look for in them?

As inscribed on the cover of The Hitchhiker’s Guide to the Galaxy, “DON’T PANIC!”

I know superannuation seems a bit scary, perhaps pointless. But it’s compulsory and you’ll notice it’s a not insignificant amount now, so stay calm. Here’s what Gen Xers need to check when your super statement comes in.

First up, don’t stuff them unread in a drawer. You need to open it.

Go straight to the good stuff – performance. How did yours go? Don’t expect too much for last financial year. A typical “balanced” fund should have eked out a slightly positive return. Those more aggressively invested than balanced – and most Gen Xers probably should be – would have a return closer to zero, even marginally negative.

A small negative is okay this year. Super is long term for Gen Xers and the returns you’ll get from having more in shares and property will pay off over time.

If you are invested in a balanced fund, should you be? Try a risk profile (for an example, search for “risk profile” at www.castellanfinancial.com.au).

Next, insurance. Gen Xers largely have big financial commitments (midgets and mortgages) and need proper insurance. Check how much insurance you’ve got with your current fund/s. If you don’t have enough to cover the mortgage, plus enough to provide investments to make up for your lost income when you’re gone … see a financial adviser immediately.

And lastly, how many statements arrived? Been a bit lazy? Could there be others (check for “lost super” at the ATO’s website)? Consider consolidating your super (but be very careful to organise your insurance first).

Bruce Brammall is the author of Debt Man Walking (www.debtman.com.au) and principal adviser with Castellan Financial Consulting.