Super: It’s Your Money
Super: It’s Your Money
Your retirement may be years or even decades away. Envisaging yourself as a senior citizen is difficult when you are saving for a big trip, paying off the mortgage or planning your children’s education.
As a consequence you may have a set and forget attitude for your superannuation.
According to the Financial Services Council, most Australians will need around 60 per cent of their pre-retirement income to maintain their current lifestyle in retirement and many people will face a shortfall in their super. A new way of thinking is needed to ensure your retirement is provided for, no matter how close or far away it is. Developing a super strategy isn’t difficult or daunting, especially with new reforms making it easier for you to take control of your money – and your future.
Consolidate your super
In Australia there are about 28 million superannuation accounts. This equates to nearly three accounts for every working Australian.
The reasons to consolidate your super are simple:
- Save costs by only paying one set of fees.
- Reduce the amount of paperwork you receive by dealing with one provider only.
- Make it easier to keep track of your super.
The first step is to see whether you have any lost or unclaimed super. It’s quite easy to lose track of your super if you have changed jobs or have moved without notifying your provider. Visit the Australian Tax Office website
www.ato.gov.au/superseeker to find your lost super.
We can help you make informed decisions about your accounts to ensure you have a sound strategy in place to save for your retirement. So speak to us if you would like some assistance.
Make your own contributions
The Government has passed law that raises the compulsory superannuation guarantee (SG) contributions from nine to 12 per cent by the 2019/20 financial year. Although this will boost your super savings, it is widely accepted that SG contributions may not be enough to fund the lifestyle you want in retirement so it is wise to consider adding extra to your super. This is especially prudent if you have had a break from the workforce, such as having a baby or losing your job.
