If you’re determined to build a prosperous financial future, a superannuation fund needs to be part of your wealth creation strategy, according to recent research from asset managers Mercer, one in four Australians are likely to outlive their retirement savings given current life expectancies. So what can you do to make sure your superannuation is in strong shape?
Work out how much you will need to retire
Retirement income calculators on ASIC’s MoneySmart website can help you assess the amount of super you can expect to accumulate, what you should aim towards for a comfortable retirement and any gaps between these figures.
Check your current super balance to measure whether you are on track to achieve the figure you need. You should be able to check this on your super fund’s website regularly to help monitor your progress and adjust your contributions or investments if needed.
Review your investment package
If your balance is not accumulating as you’d hoped, most funds offer several options within the investment package you choose based on your situation.
Help build your super balance
Considering a self-managed super fund (SMSF): If you have a high super balance and are a keen investor, managing your own fund may give you more control and potentially save cost.
Contributing more to your super each pay cheque can be an easy, tax-free way to build your balance if it fits your financial situation.
If you’ve worked in multiple jobs, visit the Australian Taxation Office (ATO) website to check if you’ve got multiple super accounts and consolidate to save on fees.
Invest lump sums
One-off windfalls such as a tax return or inheritance, could be used to top up your super.
Compare other superannuation funds
Research the financial performance and fees of other superannuation funds, to weigh up whether you could potentially get better results elsewhere. Consider your life insurance and income protection cover first to make sure you have the appropriate cover. Seek financial advice if you’re unsure.