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Summary

The word superannuation naturally leads people to think of their retirement, as that’s what super is built for and it is at around the age of 65 and over that superannuation funds will finally be put to use. However, just because accessing your super may seem like a long way off for some, it’s important to invest your time and your money into a superannuation fund while you’re young.

Content

The word superannuation naturally leads people to think of their retirement, as that’s what super is built for and it is at around the age of 65 and over that superannuation funds will finally be put to use. However, just because accessing your super may seem like a long way off for some, it’s important to invest your time and your money into a superannuation fund while you’re young.

A few small steps now can help to boost your super fund significantly for later life.  Follow our top five steps below and watch your super grow.

1. Collaboration is key

In the earlier stages of life it is inevitable that you may have had a number of short term jobs. Australian law states that each time you are employed you must join a superannuation fund through your place of work. Although you may have relatively small amounts in each super fund, it’s important to bring them all together to save on fees and to push your money to work harder. A super is much easier to manage if it’s all in one place.

2. Check out the competition

Your current super fund may be working well for you at present, but how are you to know if you could be getting a better deal elsewhere? Research. By dedicating some time to browse a variety of super funds, their investment options and their respective fees,  you’ll soon realise what type of super fund your money would be best suited to. Be brave and move, what’s stopping you?

3. Set your goals

Saving for the short term is hard, saving for the distant future is even harder. Although it might seem like a challenge, take some time to work out how much super you think you will need (or want) when it comes to retirement.  Once you have a goal amount in mind you will be more determined to reach and exceed it. Moneysmart.gov.au has a handy online super calculator which is a great start.

4. Be generous

Although super guarantee payments are going to be useful, it’s likely that you will need extra contributions to your fund to live a comfortable retirement.  There are two options to give your super a boost, dependent on your salary:

– If you are on a low salary you may be eligible for government co-contribution payment (if you make a contribution from your after-tax salary).

– If you are on a high salary, you should consider salary sacrifice, which allows you to effectively contribute to your super using you pre-tax income.

Work with your Financial Adviser to develop a plan that will work for you.

5. Stay motivated

Superannuation is a long term investment, but it is vital that you don’t simply forget about it. Life milestones like marriage, purchasing a house or having children can all affect your super, so be sure to check in and continue to take stock every so often.

Superannuation is a long term commitment with a highly valuable end result, the sooner you take an interest the better.