Don’t worry, we all think it. I’m in the financial planning industry, assisting people every day with superannuation and insurance, yet I still look at my own super balance and think “that will never be enough. I’ll be working until I’m 90 years old”.
For the record, I hate the word retirement. It makes me feel old just saying it! I still have 25+ years left of my working career, so I don’t like to feel old just yet! But I do worry about it.
There are a few really simple things you can do that will ensure a more comfortable retirement.
Consider salary sacrifice – this is where you contribute extra money to your superannuation fund from your own pay. Your employer deducts the super payment, and it’s normally taxed at a lower rate (15%), which saves you from paying extra tax as well as tops up your superannuation.
But we don’t all have extra left from our pay each week, do we? Living week to week is common, especially the younger you are.
So two ridiculously easy things to do, without affecting your hip pocket, is to ensure you only have ONE superannuation fund.
Multiple jobs can mean multiple funds, and that means hundreds of dollars in account fees. Even a basic superannuation fund can charge $85 a year admin. For doing nothing! If you’re 20 years old and have 3 super funds, by the time you retire you would have wasted $7,650 (best case scenario) on unnecessary fees! If you happen to have a fund charging higher admin fees than that, well…you get the picture. Money down the drain.
So, think about the jobs you’ve had and which super funds they set you up with – pick one and consolidate. And get on the ATO Super Seeker website (https://superseeker.super.ato.gov.au) and search for any super that might be yours. If you’ve moved house and your fund can’t find you, this is where it will be recorded.
SHANNON BENNETT – SOUTHERN CROSS FINANCIAL