For the vast majority of Aussies, superannuation is the primary source of retirement savings. It’s therefore only prudent that you make the most of your current income to have appreciable savings in your super funds.
Boosting your superannuation does not always involve paying more money into your super fund account. There are various strategies that you can use to boost your super without putting in more personal contributions or salary-sacrificing. These can include the following:-
Consolidating Your Superannuation Accounts
If you are maintaining multiple superannuation accounts from different employers, you will be footing multiple annual fees on the different accounts and this increases the cost of managing your super funds. If you are changing jobs often or working multiple jobs and your employers have to pay contributions to new accounts every time, it would be prudent to consolidate your accounts into a single super fund that you are comfortable with in order to cut down on the annual fees.
Pick the right super investments
Super investments shouldn’t be a set and forget thing. Instead, constantly readjust super investment strategies as well as the insurance cover at the varied life stages of your super fund. This is because your investment and financial needs are not static. They will change over time and you will need to readjust your investment strategy to reflect those changes. There are thousands of superannuation investment options that you can pick from so you need to take the time to carefully weigh your options before you embark on any asset class.
Leverage the superannuation insurance offerings
Workers can organize their insurance covers through their superannuation funds. These can include the covers such as life insurance, income protection insurance and the total and permanent disability insurance coverage.
Talk to your super fund. Many typically offer a certain level of insurance coverage and you can evaluate if this can be suitable for your needs. Since they may not be enough to meet your needs, you can use the insurance packages offered through your super fund to supplement your personal insurance coverage.
Track your lost superannuation
People change jobs, names or even places of residences often or sometimes work multiple jobs at a go and they typically use different super fund accounts for their superannuation payments. If you change jobs often and have worked over several decades, it is easy to forget some of your super accounts. If you suspect you might have lost track of some of your super, you can use the Australian Taxation Office website to track down your past super accounts and recover your savings.
Cut down your superannuation fees
Your superannuation fees will invariably eat into your super savings. Every super fund has various fees and charges but there is always the risk of paying too much than you should. The differences in the super fees and charges may seem small but the cumulative effect can be huge. If you start putting money into your super at the age of 25, the cumulative effect of super fees will be in the hundreds of thousands of dollars by the time you hit the age of 65. Don’t take the small differences in the superannuation fees for granted.
Many Australian workers grapple with the challenge of saving enough for retirement. However, you can make your salary travel further by making the most of what you already have in your super fund.
Spend time in researching the best super options that will help you realize your financial goals. Don’t just focus on the fund but also the investments. Over time, a prudent super fund investment strategy will be worth the effort. Talk to an accountant Melbourne expert to help you filter out the best super and investment options that will fully leverage your finances to help you build a good retirement nest egg.