Managing your superannuation
Managing your superannuation isn't easy. There are a lot of factors to take into consideration to ensure that you will have enough superannuation saved up for retirement.
Below we've outlined some small things you should consider doing to better manage your superannuation depending on your life stage.
Young & Single superannuation stage
Superannuation probably isn't on top of your financial list of 'things to do'. You work, you're saving money to either travel or to buy a car, and you have some left over spending money. You will probably stick to the first or second superannuation fund you first opened when you started working. It doesn't really matter to you that much, because retirement is only for 'older people' and you really don't feel old. Besides, you're too busy living life to its fullest!
Small things you can do now to help your superannuation:
- select the right superannuation fund
- try to stick to one superannuation fund
- spend some extra time now to select the right investment strategy
- make extra contributions to your superannuation with your tax return funds
Young Couples superannuation stage
You may be a young couple with more responsibilities, young children, a car and possibly a mortgage. Your superannuation may come to mind, but you have too many responsibilities to really take a look at your superannuation properly. Perhaps you've opened a number superannuation fund accounts because you've done a lot of job hopping? You realize you have multiple superannuation funds and that you really should roll them into one superannuation fund. As long as there are low fees, you assume that your superannuation fund is happily saving away.
Small things you can do now to help your superannuation:
- calculate how much superannuation you may need for the future
- roll your superannuation funds into one
- review your investment strategy and change if needs be
- make extra contributions to your superannuation with your tax return funds
- get your partner to make extra superannuation contributions to make up for the time spent out of work raising children
- consider government co-contributions
Mature Families superannuation stage
Your kids have all grown up, your mortgage is significantly smaller, and you may be vaguely thinking about retirement. Surely what you have saved over all those years should be enough?
Small things you can do now to help your superannuation:
- review your investment strategy and change if needs be
- make extra superannuation contributions to your fund with your tax return funds
- get your partner to make extra superannuation contributions to make up for the time spent out of work raising children
- explore superannuation strategies to boost your superannuation savings
Empty Nesters superannuation stage
The kids have moved out, and you are daydreaming about not having to go to work. You may even be daydreaming about what you'd ideally like to be doing in retirement. How much superannuation do you have saved up to realize those dreams? You may ask 'Do I have enough super?'.
Small things you can do now to help your superannuation:
- make extra contributions with your tax return funds
- confirm if you will have enough superannuation saved to meet your financial goals. If not, consult your financial adviser for strategies to boost your superannuation
- confirm what age you will retire, or if you plan to work part-time for a few more years to ease into retirement
- explore transition to retirement and superannuation income stream options. Doing your research early on can make the final decision at retirement time much easier
It doesn't matter which superannuation stage you are at!
Financial advice can always help boost your superannuation. Whether you just want to compare superannuation funds or create a superannuation investment strategy, xLife can help.
Get your first Superannuation Consultation FREE!
Talk to a Specialist Superannuation Adviser on 1300 135 205 about growing your superannuation today!
July 2010
