PEDESTRIAN.TV has partnered with CommBank so that future you will say thanks to present you. Check out CommBank’s resources on their website HERE – they’ve got some helpful info that can help you get your super sorted without a fuss.
Superannuation. You’ve probably heard of it, and we’re willing to bet that you haven’t given it a whole lot of thought, have you? Well we reckon you should, because ain’t nobody got time to be upset with how they’ll have to live their life during those A+ golden years.
Thousands of Australians are currently on a path to have a less-than-desirable-lump sum available to them when it comes time to hang up their work boots. Depending on your income level, there’s a chance that the 9.5% (the government required percentage your employer makes to your super fund) of your annual earnings may not be enough for you to live the lifestyle you want and deserve.
So, what can you do to help ensure that you can retire comfortably? Check out the below.
CONSOLIDATE YOUR FUNDS
Yes, let’s start with the glaringly obvious – the tip you’ve probably heard time and time again.
Super consolidation is the process of bringing together the money from all of your stray funds and keeping ’em in the one spot. Odds are you’ve held a part-time gig during your teen years, did a short stint at some retailer during uni – all of this work would likely have super attached to it, most of which will be held in a variety of different funds.
Why do we keep going on about this? Because super funds each charge different fees for you to hold an account with them. The more super funds you’re with, the more likely it is you’re being charged multiple fees. If you are thinking about consolidating your super, remember to do a little research – check any insurance cover you’ll lose, exit fees you’ll have to pay and to where your current super employer contributions are going.
START THINKING ABOUT SUPER EARLY
Given we’ve got a solid grasp on our usual readership, we know you’re probably in an age bracket where you can still turn your super ship around before hitting treacherous waters. Do yourself a solid and start thinking about your super ASAP.
Like, we need somewhere around $545,000 for singles and $640,000 for couples for a comfortable retirement (would you want any other?). The sooner you start taking steps to ensure you’ll retire comfortably, the more likely it is you’ll be in a better position down the line.
SACRIFICE SOME OF YOUR SALARY
As it stands, your employer is generally required to contribute 9.5% of your income to your designated super fund. You’re more than welcome, however, to request that these contributions are increased to a percentage of your choosing.
Sure, losing cash out of your weekly wage isn’t great, but it’s probably one of the better ways to help ensure you’ve got a decent nest egg come retirement.
Additionally, and without going into too much detail, sacrificing your salary can decrease your overall taxable income – something that can seriously come in handy when transitioning into different tax brackets.
GET UP TO SPEED
WELL DONE. YOU CLICKED ON THIS ARTICLE. YOU’VE TAKEN THE FIRST STEP IN THE JOURNEY TO HELP ENSURE A FRUITFUL RETIREMENT. Seriously crew, start getting the 411 on all elements of superannuation whenever you’ve got a spare sec. Chat to your ‘rents,chat to that really smart friend who you’ve been meaning to reach out to for a while or if you’re really serious – seek financial advice.
Whatever the means is, go for it. Being uneducated on the topic of superannuation, regardless of whether you thinking it’s boring or not, may come back to shoot you in the foot one day. The best part is once you’re sorted, it probably doesn’t need constant attention – just check back in once in a while to make sure it’s moving in the right direction.
If you’re keen on accessing more information about superannuation then head to CommBank‘s website HERE.
Photo: The Simpsons.