SUPERis one of the single largest investments you’ll ever make, but if you’re like most people, you may not give your super much thought until you’re approaching retirement age. By that stage, there’s very little time left for you to grow your retirement savings.
It is really important take an interest in your super. Changes you make now could make a big difference to your overall financial position. And after all, it’s your money and you’ve worked hard for it!
Here are five quick tips to help you grow your super and start planning for a successful retirement.
1. Get into it
The money that goes into your super now will need to provide you with an income once you retire and the sooner you get to know your super, the better.
Taking a keen interest in your super now could make a big difference to the type of lifestyle you will be able to afford to lead in the years to come.
Whether you’re just starting out in the workforce, or are well established in your career, it’s important to investigate things like how many super accounts you have, how much you are paying out in fees and whether your investment strategy and your insurance cover meets your personal circumstances.
Most of us shop around to get the best bank account or the best mortgage rate, so why not our super account? It just makes sense. And when you move jobs, ensure you take your super account with you.
These days most people have the ability to choose which super fund their money is paid into, so tell your new employer which fund you’re with and you will always be able to keep track of your super.
2. Top up your super
Whether you’re familiar with how interest works or not, it’s safe to say the effects of compound interest over decades can be extraordinary. Essentially, the money your employer puts into super on your behalf and the interest you earn on that money is also accruing interest. So over time, depending on movements in the stock market, compound interest can have a snowball effect on your super balance.
It’s worth putting aside even a small amount of money from each pay to contribute to your super. You can make contributions from your pre-tax or after-tax salary and there may be tax advantages in doing so.
3. Consider your investment strategy
The overwhelming majority of Australians with superannuation accounts invest in their super fund’s default investment option (also known as a Balanced or MySuper investment option).
Default investment options are suited to members who would prefer their investments to be managed by investing in a range of asset classes.
But when you have 30 years still to work, you may wish to invest in a growth or high-growth investment. These types of investments are generally riskier than a Balanced option and may achieve greater negative or positive returns over the long term.
In the same way, some would consider it an investment risk for someone approaching retirement to be invested in a high growth option.
Instead, a more conservative approach is usually advised for those with only a few years left in the workforce as they have less time to ride out fluctuations in the market.
It’s important to get independent advice to ensure you make the investment decisions that suit you and your circumstances.
4. Customise your insurance cover
You will generally have some Death and Total and Permanent Disability cover (often referred to as ‘default cover’) allocated to you when you open a super account and the premiums for that cover are deducted from your account.
Depending on your age and personal circumstances however, you may require more cover, less cover or no cover at all.
That’s why it’s important to consider how much insurance you would need to cover your debts and take care of your dependants in the event that you were to become disabled and unable to work, or worse still, passed away.
5. Calculate how much you will have
How much is enough to finance your life in retirement? It seems to be the question on everyone’s lips these days. Websites like the government’s moneysmart南京夜网419论坛 can help you to work out how much you need and how much you may have in retirement based on your current financial position.
It can also estimate how much you will have by retirement age if you start topping up your super now.
Find out more
Prime Super is committed to helping its members grow, manage and protect their wealth and retirement income. If you have any questions about growing your super, give us a call on 1800 675 839 or contact your local Regional Manager.
Western and South East Victoria
M: 0400 068 224 E:[email protected]南京夜网419论坛
M: 0427 464 526 E:[email protected]南京夜网419论坛
North Eastern Victoria
M: 0488 989 444 E:[email protected]南京夜网419论坛
DISCLAIMER – Prime Super (ABN 60 562 335 823) is an independent profit-to-members Superannuation Fund. This article contains general information only and does not take account of your personal circumstances. You should obtain personal advice where appropriate. This article is current as at the date of publication and subject to change. Prime Super (ABN 60 562 335 823) is issued by Prime Super Pty Ltd (ABN 81 067 241 016 AFSL 219723 RSE L0000277 RN1000276. A Product Disclosure Statement is available from the issuer by phoning 1800 675 839.
This story Administrator ready to work first appeared on Nanjing Night Net.