How can I make the most of my superannuation savings?
If you are like me, someone who joined the superannuation party only in their early 30s, this question concerns you more than others. When it comes to superannuation savings, there is a lot you can do that won’t cost you much effort but which will go a long way to helping you get on the right track.
Start with an annual super health check-up – just like with your own health, your superannuation needs to undergo an annual check-up. It might sound trivial, but making sure you’re in the right fund is the biggest part of getting the job done.
To determine if you are in the right fund you need to look at the returns your fund has earned and the fees you pay to get those returns. Compare your fund’s returns and associated fees and compare these with your fund’s market peers to see how it stacks up.
Then skim through your super fund’s insurance arrangement and ensure you aren’t paying for anything that you don’t need. Or perhaps it’s the opposite – if you are planning to get insurance outside your super, it is worth first comparing it with insurance within your fund to potentially save on your premiums.
Make sure also that all your super is consolidated into a single account, unless you are diversifying on purpose.
Assess your personal circumstances. Have there been any changes in your personal life? Have you been off work due to some reason like unpaid maternity leave (as I have been)? Any changes to your current income would change your super contributions and so impact your retirement balance. It is best to make up any loss of super contributions sooner rather than later. Look at extra benefits and features – there are many ways that a super fund can help you save more. Check with your fund for savings on gym memberships, pet insurance, travel insurance, and so on. If your fund lets you contribute any spare change, that’s a great way to add more to your retirement balance without feeling any heat.
So, if you haven’t already checked on your super, go do it now.
Note: Rainmaker Group publishes Money magazine.