A comfortable retirement doesn’t have to be a dream for the few.
Our National Manager Wealth Management, Jeremy Quartermaine, believes that with a few small tweaks, many people can boost their superannuation balances to levels they might not have dreamed about.
We take a look at his top 5 tips to get you started.
- Tip #1
Start early. The average salary is around $67,000 p.a. and on top of that, employers pay 10% into your super. That alone won’t achieve a comfortable retirement, but by also contributing some of your personal money, you could have a real impact on your retirement savings and may even be able to consider retirement a little sooner than expected.
The compounding effect makes a big difference. Plus, you’ll adapt to having a little less to spend each week. The bottom line is, the earlier you start, the more you’ll have for retirement.
- Tip #2
Be committed. You’re trying to develop a lifetime habit here, so the rewards will come if you set yourself some super goals and stick to them.
As mentioned, a great way to help you get started is to personally contribute to super each pay, but there are some other things you might consider, including understanding your investment risk profile and researching the best super fund to suit your needs.
- Tip #3
Get your head around it. Understand and take an interest in your investment options. All leading super funds allow you to log in and look at your balance and how it’s invested. There are some great online tools to help you understand if you’re in the right investment. Don’t be afraid to seek advice from a financial adviser. moneysmart.gov.au is a great place to start your education.
- Tip #4
If you have multiple funds, consider consolidating. Many people work several different jobs throughout their careers. Sometimes this means that a few different superannuation accounts might exist for one person, which results in multiple fees and charges that ultimately impact your ability to grow your balance. When considering consolidating, it is also important to consider what you may lose e.g. personal insurances, associated discounts.
- Tip #5
Review your situation regularly. You review things like home and health insurance regularly, right? So why would superannuation be any different? Some things you might consider re-visiting from time to time include your contributions, investment strategy, your fund’s performance, and the insurances you might hold within super. Always aim to make your money work hard for you.
Finally, if you need some help with your own personal situation, take the time to meet with a financial adviser.
For more information on Beyond Bank’s financial planning services please click here.
This information is of a general nature only and has been provided without taking account of your objectives, financial situation or needs. Because of this, we recommend you consider, with or without the assistance of a financial adviser, whether the information is appropriate in light of your particular circumstances and needs. Past performance is no guarantee of future performance. You should obtain the relevant Product Disclosure Statement for any product mentioned and consider its contents before making any decision.
Financial planning services are provided by Eastwoods Wealth Management Pty Ltd ABN 17 008 167 002 / AFSL 237853 trading as Beyond Bank Australia Wealth Management. Eastwoods Wealth Management Pty Ltd is a wholly owned but not guaranteed subsidiary of Beyond Bank Australia ABN 15 087 651 143 / AFSL 237 856.