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Book a FREE consultation
and receive your complimentary eBook

Get started with a free strategy consultation and receive a copy of the Good Fortune Guide – written by James McFall, Managing Director Yield™ FP and 2020 National Finalist Certified Financial Planner of the Year to help educate you on your Financial Plan.

My Boss Didn’t Pay My Super, How is my Balance Affected?

missing super payment
Retirement Planning Successful retirement planning requires your investments to last your entire life after-work, which requires a long term and well thought out structure for you to achieve this.

We were recently asked to answer this question from Adviser Ratings, for one of their readers, Colleen. She wanted to know as to whether a missed super payment from her employer has impacted her superannuation balance.

“I’ve just learned that my boss hadn’t paid my super for the last financial year (2020/2021). Whilst it has now been mostly paid up to date, I’d like to know how much this large delay in super payments has impacted my super balance? I’m 52 years of age, employed full-time on 60k p.a. and have not personally contributed to my super.”

Hi Colleen,

This large delay may have impacted your super balance, by how much really depends on your selected investment strategy and its asset allocation. The default investment strategy in a typical super fund is in the balanced portfolio, with an exposure of approximately 70% allocation to growth assets like shares and property and 30% to defensive assets like bonds and cash.  To give you some context, in the last financial year, the ASX 200 returned 26% p.a.

When your employer makes a contribution, the funds are invested in line with your investment strategy. Every month the contributions are added to your super savings and invested. Any income/dividends earned on these contributions are reinvested, making your super grow faster. This is the effect of compounding. Based on your income, you should have been paid $5700 pa (before tax) into your super.  As a consequence of delaying contributions mean the funds have missed out on generating an income and the opportunity to invest when the share market was recovering.

The good news is your employer should pay 10% p.a. interest on the missed payment to compensate for lost earnings in your super.

missed super payment

Important Note
Any information provided here is general advice only and does not consider your objectives, financial situation or needs. This information should not be taken as comprehensive and does not constitute legal or financial advice. You should seek legal, financial or other professional advice before relying on any content. Yield Financial Planning is not responsible to you or anyone else for any loss suffered in connection with the use of this information. Information is only current at the date initially published.

About Yield™ - Financial Planner Melbourne

Who we serve – We help time poor professionals and business owners who intuitively know they should be doing more to improve their financial position and are seeking an expert to guide them on financial planning strategies. Our clients want personalised financial planning advice and to feel empowered and confident that they can achieve a secure transition to retirement.

What we do – We gain a deep understanding of your current financial position and preferences, what you value and want to achieve. We then help you develop a highly personalised financial plan, to show you how to make your money work harder for you. Ongoing we regularly monitor and measure progress against your plan projections, to show you how you’re tracking and help you manage change to your advantage.

How we do it – We apply our proven expertise in investment markets (Shares & Property), Tax and Debt structuring, Retirement Planning, Risk management and Estate planning, to help you reorganise the way you use your money to achieve your desired outcomes.

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