Grow Your Superannuation Before Retirement
As retirement creeps up, you’ll think about ways to retire comfortably. If you want to have enough you need to be proactive in finding ways to grow your super. Employer compulsory contributions of 9.5% of your income are a great start. But, if you make some personal contributions in addition to this, you can grow your superannuation and really make it move upwards.
Understanding How Your Superannuation Grows
Firstly, have a look at your most recent superannuation statement and look at how much it has gone up in a year. Look at the fees that might be coming out of your super and make sure that they aren’t eating into your funds too much. You can reduce your insurances on your superannuation policy at any time, including death cover. Not only can fees impact on the balance of your superannuation but how super is invested impacts on the balance of your superannuation too. There are options to choose regarding how your money is invested when you want to grow your superannuation. Thoroughly researching how your super is working for you will empower you to make decisions moving forward.
Choosing a Superannuation Fund
Typically, Australian workers can choose their own superannuation fund, and can, therefore, switch funds at any time. Super funds vary in the fees that they charge and there are also industry funds that you can consider.
Find Your Lost Superannuation
Many people move from job to job through the years and often overlook rolling over their superannuation when they open a new super membership with their new employer. Obviously the best way to avoid this from occurring is to stick with one super fund the whole way through. But if you think you’ve got some lost super floating around, finding it and rolling it over is a sure and fast way to increase your super funds.
To find any lost superannuation you can search through the MyGov Portal once you’ve registered. The ATO website will show you if you have any lost super and give you instructions on how to roll it over.
Having a Single Super Fund
Many Australians have multiple superannuation funds and don’t even realise it. When it comes to superannuation, less is more. By having one super fund you’ll only incur one set of fees and insurances.
When consolidating super funds be sure to look at the exit fees. And remember that you don’t need to do the hard work. The MyGov portal will guide you through the consolidation process.
Top Up Your Superannuation
While it’s great that there’s employer contributions going into your super account, it’s likely that this won’t be enough to retire on. It’s a mistake to underestimate how much you’ll need to retire. You can boost your super by making voluntary contributions.
Alternatively, talk with your workplace about salary sacrificing super contributions. It reduces your taxable income and increases your superannuation funds balance at the same time.
Seeking Superannuation Guidance
Many superannuation funds offer free advice to members. They can give you advice on ways to grow your super including advice on the investment options that are available to you.
Although we don’t all spend much time thinking about income in retirement, and we may be underprepared, it’s never too late to build your superannuation balance. You can start today by getting in contact with your fund.