In collaboration with Verve Super
We often think of Super as a ‘savings’ account that we can’t access. Our employers add our super contributions to our account, and we don’t think too much about it until we hit retirement. But, the decisions we make in our 20s, 30s and 40s can have a huge impact on the money we’ll have available when we retire. It can be the difference between surviving and thriving for future you.
Find your magic number
How much will you need to retire? There’s the $1 million dollar myth. At some point, the idea that we all need $1 million dollars to retire became widespread, but it’s not quite the truth for all of us. In reality, that number will be different for everyone. So don’t fret if you’re way off that mark!
It is important to work out early in life how much you may need later, and keep an eye on how you’re tracking. If you’re not quite tracking to your ‘number’, keep reading for a few savvy ways to boost your super for the retirement you want.
Consolidate your super
Four million people have two or more super accounts, which means they’re paying multiple sets of fees and possibly being hit with multiple sets of insurance premiums.
Consolidating all of your super into one account ensures your hard-earned money isn’t being wasted unnecessarily on fees and charges. The good news is that you can easily track down all your super accounts via the ATO website, including identifying which accounts have insurance attached. It only takes a few minutes and could make a big big difference in the long run.
Find any missing super
The ATO reported that as of 30 June 2020, there’s almost $14 billion dollars of lost super in Australia. Make sure that none of those lost $$ are yours!
Luckily, hunting down your lost super isn’t hard. Your super fund should be able to help you search and track down any lost super (and consolidate it into your current super balance). You can also log into your MyGov account to check for any lost super.
Rethink the ‘default’
58% of people in Australia are still with the default super fund their employer set up. If that’s you, it might be time to consider if that is the right choice for you — based on your risk profile, returns, fees, your values and the kind of service you expect from your super fund.
When was the last time you checked the performance of your fund against other super funds on the market? Is your super fund a top performer, or is it lagging behind? This could have a big impact on your returns both now and over the years to come, so it’s important to compare your options and make sure you’re getting what you need.
Maximise your tax benefits
Many people don’t realise that super is also a tax structure. There can be significant tax advantages to putting away more super.
Adding additional contributions is also a great way to help you grow your balance. Contributing an extra $10,000 in your 20s or 30s could grow into over $100,000 of additional savings by the time you retire. Consider salary sacrificing as an option and investigate the different types of contributions and how they’re taxed.
Aligning with your values
It may seem like a random question, but do you know what companies you’re investing in through your super fund? Unless your super fund explicitly states on its website that it doesn’t invest in companies that are involved in fossil fuels, gambling, tobacco, weapons etc. then you can assume that your super might be being used to help grow these companies and industries. If you’re not sure where they’re investing your super, just ask. If you don’t get a clear answer, that might tell you enough. If you’re particularly concerned about fossil fuels, MarketForces has a list of super funds that currently invest in coal, oil and gas.
There are great ethical funds with transparent investment practices and competitive returns. So, there is no need to compromise your values or your future balance. You can have both.
If you want to know more about Verve Super or get in contact with the team click to check out their website.