Super hero or zero?
You should be checking now if you have enough superannuation for retirement, writes
WORKERS are being urged to check on their superannuation balances now, to ensure they will have enough money in retirement.
The Association of Superannuation Funds of Australia releases new figures today calculating exactly how much people earning an average annual salary of $80,000 should now have in their super fund.
It found a 32 year old employee should have $45,000, a 42 year old should have $148,000, a 52 year old should have $285,000 and a 62 year old should have $465,000.
ASFA chief executive officer Dr Martin Fahy urged people to not be afraid of checking their balance status.
“If you are not where you think you should be, look at how you might be able to tip some extra money in,” he said.
“Look at your discretionary spending – can you make a cup of coffee instead of buying a takeaway coffee?”
Dr Fahy also urged workers to use catch-up measures “because it will have a compounding impact”.
ASFA’s retirement standard says, to enjoy a comfortable retirement, singles need $545,000 once they stop work and couples need $640,000. This is presuming retirees own DAVID AND LIBBY KOCH: Five-step savings mantra for first-home buyers their home outright and have good health.
Your employer must deposit 9.5 per cent of your ordinary time earnings into your super fund. All workers are eligible to receive super if they are aged 18 or older and earn more than $450 in a month. Employees can tip extra into their funds but must be mindful of the caps. Concessional contributions (pre-tax) are capped at $25,000 per year, while the cap for nonconcessional contributions is currently $100,000 per year.
AustralianSuper’s group executive of product brand and reputation, Paul Schroder, said “it’s never too late to do something with your super”.
“For young people it’s really important,” he said.
“For a 25 year old who puts $50 extra a month into their super, they will end up having an extra $175,000 by age 65.
“That’s compound interest based on AustralianSuper’s long-term performance, which is 6.5 per cent.”
Super fund Hesta’s chief executive officer, Debby Blakey, said as we headed towards the end of the financial year, it was an ideal time to check up on your
super. “The three Cs – consolidate, contribute and check – are a great super starting point,” she said.
“It’s important to continue to check to see that your choice of investment options and insurance still suits your needs as they can change over time.”