You might think of super as just a percentage of your salary that you can’t access. But it’s important to remember – it’s your money, it’s just being held for you until you retire. The main idea behind superannuation is to help you build a nest egg which you then use to create an income in retirement (or semi retirement). Including it as part of your financial plans is now more important than ever.
Saving through super can be much more tax effective than saving the same amount outside super. And this can make a real difference to how much money you’ll eventually have for your retirement.
There are many different types of super funds, each with their own benefits and structures. It is worth understanding them as it will offer you more options and alternatives as you approach retirement.
- Our population is ageing rapidly and the aged pension will not be enough.
- Super is compulsory for employees. Superannuation Guarantee (SG) contributions were introduced to help us take control of our retirement.
- The AMP Superannuation Adequacy Index (June 2009) found that more than 40% of workers – more than four million people – will not have enough money in retirement.
- Making only SG contributions for 40 years (approximate working life) will provide you with just over half of your pre-retirement income.
We think you need 65% of your pre-retirement income to retire comfortably.
The best place to start is to ask ‘How much do I need?’
The next step is to see how you’re tracking and determine what strategies you can use to reach your goals.
This is where we come in.
So consolidate your super, start accumulating, plan for your retirement and ensure when you do retire they really are the best years of your life.