08 Dec ‘How’s your Super going?’

Your superannuation fund can be a mysterious thing. How can you access it? How can you increase the amount in it? How do you even know if you’re on the right path? Retirement is no laughing matter, it’s absolutely essential that you take it seriously otherwise you may find yourself in a sticky situation years from now when life is supposed to be slowing down. The less unexpected complications, the better.


Are you struggling with choosing a superannuation fund? If you’re just starting out in the working world then the first step is to determine how much involvement you’d like to have with your fund.  You can select a fund that manages itself for you ongoing, thus requiring little input on your own behalf or you can select a self-managed super fund that requires you to maintain yourself ongoing. This second option shouldn’t be taken lightly as it’s essential that you’re making the most money for yourself in the long run.


There are super funds that offer high returns, but along with those returns comes an escalated amount of risk. If you prefer not to undergo unnecessary risks then your returns won’t be as fruitful, though they are more guaranteed.  When selecting your super it’s important to determine your desired level of involvement and your desired amount of risk.


The key to a successful super fund is determining how much money you’re going to need when you retire. According to the ATO, most retirees are able to comfortably live on approximately 60% of their salary. The reason for this is the assumption that they are no longer supporting dependents and have likely paid off their mortgage. If you are not a homeowner or you know you’ll likely still have dependents by the age of 55-60 then you may want to consider aiming for a higher percentage of your salary.  Just take the time to look at your current lifestyle and what your expectations are for your retired lifestyle and work towards achieving that goal in a feasible and comfortable manner. Don’t stretch yourself too far with excessive contributions making your current lifestyle unnecessarily difficult, but always keep your end goal in mind.


Another important recommendation that’s often overlooked is to make sure you’re keeping track of all your super funds. There are many people who started working at a young age (long before they were considering retirement planning) and a superfund was set up for them by their employer. If they didn’t keep track of that fund then they likely have ‘free’ money just waiting for them to claim it. Look back at your employment history and make sure you have access to all previous superannuation funds and consider consolidating them. Having multiple funds means having multiple fees for absolutely no reason.


Lastly, keep track of your superannuation fund regularly. Login and ensure that you’re employer is making regular contributions. Consider making additional personal contributions when you can and always keep your end goal in mind.


If you’re still struggling with selecting a superannuation fund then contact our specialist team today.  We’re happy to help.


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