Five Superannuation Saving Tips for Australians

Many people either do not understand superannuation or are intimidated by the investment jargon. The Australian government has tried to educate its people over the years on superannuation with certain websites geared towards a basic understanding of superannuation.

Instead of trying to teach you everything we know on superannuation, we've outlined a few easy-to-understand superannuation tips for you to take action now.

Superannuation Savings Tips

1. Calculate how much superannuation you need to retire comfortably - finding out how much superannuation you should have before you plan to retire gives you a goal to work towards. If you don't have a superannuation savings goal, chances are that you may not have enough to retire comfortably on.

Research has shown that you should be making an extra 3-5% extra contribution to your superannuation fund on top of your employer superannuation guarantee of 9%. You can find out how much you may need with an online superannuation calculator, however if you would like a more detailed projection that will take into account variables like your age, current superannuation savings, inflation, and interest, an xLife superannuation adviser can help.

2. Roll your superannuation into one fund - hopefully all the advertisements on TV have spurred you into action, but if you still haven't consolidated your superannuation into one fund, now is the time! If you're not sure which superannuation fund you should roll your multiple superannuation funds into, speak to an xLife adviser. We can compare superannuation funds and help you select the most suitable superannuation fund to meet your needs.

3. Review your superannuation investment strategy - depending on your age and your financial goals, be sure to select and review your superannuation investment strategy. Most Australian superannuation funds give you the option of selecting an investment strategy to suit your superannuation goals. If you are unsure what investment options you have, contact your superannuation fund.

A good superannuation investment strategy to suit your situation can mean the difference between thousands, and tens of thousands later on. Be prepared to look at your investments from a long-term perspective, as the market regularly goes through short-term fluctuations.

The investment strategy part of any superannuation fund can be tricky, and you may find help from a qualified financial advisor particularly helpful in this instance.

4. Use your tax return funds to boost your superannuation - this is perhaps one of the easiest things you can do to boost your superannuation regularly. Use some of your tax return funds to boost your super each year. Making regular contributions to your super all adds up in the end, even if you contribute only $100 each year.

5. Make extra super contributions if you plan to take maternity leave - your partner can make extra spouse superannuation contributions into your superannuation fund so you don't miss out on the compound interest that can significantly grow your superannuation over time. It is a known fact that women live longer than men, so it makes sense for women to be prudent about their superannuation.

For more superannuation saving tips!

Contact xLife to discuss your superannuation comparison needs. We can help ensure you will have enough funds to retire comfortably and offer more superannuation strategies to grow your superannuation.

Get your first Superannuation Consultation FREE!
Talk to a Specialist Superannuation Adviser on 1300 135 205 about growing your superannuation today!

May 2010