Hey Super! What are you doing over there?! Superannuation Tips

Do you know what your superannuation fund is doing?

Don’t say boring!! This is really important!

Did you know that 90% of women don’t have enough in their superannuation account to comfortably retire? Well that’s what the Super Guru says.

I used to be the typical person you would hear saying, “It’s all about living in the now man!” Which is lovely but it’s also a good idea to think about how you will be living in the future.

I recently read an article (and then another eight) about how most people have no idea what the hell is even going on with their super. About two years ago, I didn’t either. Many people assume that it is one big savings account so that when you want out of the working world, you can go on as many cruises as you like!! Well, I’m telling you now, your superannuation is not a savings account. It is an investment fund and involves risk and return.

The thing we need to understand, is that the money in those a funds is your money. Therefore, you want to know how it is being managed right? Depending on your age and income, you will be allocated an investment plan. It is really important, especially as time goes by, to check if this plan is right for you. Ask yourself if you are comfortable with the current level of risk and return that your plan provides. If not, do some research, speak to people about it and change it.

Legally, employers have to put in at least 9.5% of their employers salaries into a superannuation fund. Stick to the 9.5 if you have to now, there’s no problem with this. You can always add more to it when you find you have more spare cash. I recommend setting us an automatic transfer of at least 13% of your pay. Here is a short video on how salary sacrifing extra super contributions works.

Need more clarification? Read this case study. In regards to this study, not only will you save on tax but your super account will grow faster.

If you are earning irregular income, (also read this!) chances are you will have to choose your super fund yourself. A little bit of research goes a long way, as not all super funds are the same. There are a number of super comparison sites to help guide you:
CanstarCannex

ChantWest

SelectingSuper

I am really happy with my fund now and the level of risk and return suits me. Not all super funds are the same. So don’t be lazy and do your homework!

It’s a good idea to think about how much you think you will need for retirement. Do you plan on dividing your time between going out for breakfast at least once a week, while planning trips to Paris at your (also regular) drinks with the girls? I have to stop for a moment here. I think that may be the fourth post I’ve made including ‘drinks with the girls’. Sorry (not sorry). Or do you just want enough money in your super for a modest retirement?

The ASIC have a handy calculator to figure out how much you’ll need here. The cool thing about this calculator, is that you can look at the projected outcome for you current contributions and then make alterations to see what it would look like if you were contributing more. At the moment it looks like I have enough for a modest couple hmmm…

Look, to be honest, at the moment I never want to retire. It’s not in my blood (thanks mum). But, I want to make sure that when I do, I can retire comfortably.

For the full article and links, visit ww.theprosperpousfox.com