Here are some tips to consider to ensure your superannuation is working as hard as you do.
We believe that there are only two ways to improve investment outcomes: the first is getting the right financial advice and the second is making the right investments. Should you decide that you need advice, we recommend seeking independent professional advice. To find an adviser in your local area, please visit the FPA website.
Investing wisely can make a huge difference to your wealth over the long term. An investment that outperforms another investment by just 3% per annum may be worth double in just 25 years through the power of compounding. Whilst your appetite for risk is key when making investment decisions, you need to make sure the investments you choose can help make your retirement goals a reality and are reviewed regularly.
If you have had more than one job in your lifetime, you might have lost sight of some of your super accounts. Current estimates state that there is over $18 billion in lost super waiting to be claimed1. To see if you have any lost super, visit www.ato.gov.au/checkyoursuper .
Once you have located all of your super, you may want to consider consolidating them into one account. It’s easier to stay in control, plus you’ll avoid excess fees which can eat into your savings.
Here’s a sobering statistic: most Australians currently don’t have enough retirement savings to cover their retirement. This discrepancy is known as the retirement gap and it’s a real problem, but there are many strategies you can consider to boost your retirement savings. The ASIC Moneysmart website outlines some of these strategies here.
Having insurance means that you can provide for yourself and your family in the event of the unforeseen occurring. Make sure you determine your insurance needs, take out the right cover and regularly review your insurance arrangements. You can learn more about insurance in super here.
Make sure you nominate your beneficiaries so that in the event of the unforeseen, your superannuation is paid according to your wishes. After all, it is one of your biggest investments and can make a big difference to your loved ones. Find out more at ASIC Moneysmart.
1https://www.smh.com.au/money/super-and-retirement/tax-office-holds-records-of-almost-18-billion-in-lost-super-20170921-gylo3z.html
