Retirement probably feels like it’s a long way away, but the sooner you take an interest in your super, the greater the reward when you finish working.
It’s been widely publicised that many Australians will have to work longer than they would like to – just so they can afford to retire.
The sooner you understand how super works and the benefits it can bring you, the better off you’ll be in the years to come. Could you afford to live on the Age Pension? Will there be an Age Pension by the time you retire?
Here are some facts to think about:
- The employer Superannuation Guarantee rate is currently 9.5% and is proposed to increase to 12%
- A lot of millennials have no idea about super, some don’t know the fees they’re being charged or have any idea how their super is being invested. Awareness and taking control can make your super work a lot harder for you
- Australians have more than 6 million unnecessary duplicate super accounts*
It’s really important to think now about the sort of life you want to live in retirement, and the income you’ll need to pay for that lifestyle – then get cracking to make that happen!
How much do you know about your super? Some questions to ask yourself...
Understanding your super statement
The annual super statement you receive – you know, the envelope that never gets opened, or gets thrown out? Well, it has loads of important information that you really need to know about.
The ages and stages of super
It’s important to review your investment strategies for superannuation over your lifetime.
Super is a long-term investment, with returns that will fluctuate over the years. It’s all about risk and return. Typically, higher risk investments come with the potential for higher earnings, while lower risk investments generally come with lower earning potential.
Here are the main things you may wish to consider:
- Can you afford to make additional super contributions?
- Is your choice of super investment suitable for your life investment needs, goals, and attitude to risk?
- Are your beneficiaries up to date?
- Are you taking advantage of the benefits of insurance inside your super?
The most important thing to remember is to regularly review your choices, whether that be your investment choice, your beneficiaries, or your level of insurance cover. The chances are your choices will change as your circumstances change, like when you buy a house, your relationship changes, you get married, or you start a family.
Case study: Andy
Before consolidating your super you should consider whether this is right for you and check if you’ll be charged any exit or other fees. You should also check the impact on any insurance arrangements (such as loss of insurance) or other benefits.
Other info you might be interested in
We're here to help
If you want to learn more or need help with making a decision about your super, you can get simple advice over the phone or face to face. It’s included as a part of your membership so there’s no extra cost.