5 steps to sorting out your super

It’s never too early (or late) to make smarter decisions for your future. Follow this simple advice to get ahead.

Superannuation. It’s one of those financial must-dos that many Australians either put off for later in life, or assume that it will take care of itself. But even the smallest decisions today can have a huge impact further down the line.

Sorting out your super could be the most important step towards a happy and secure retirement. And it’s easier than you might think.

Did you know 40 per cent of Australians are paying too much in superannuation fees, just by having multiple super funds?

If you’ve worked at a few different jobs, your superannuation could be spread across multiple funds. This makes it hard to keep track of your investments, and it means you’re doubling up on fees that could be avoided.

Rolling your super into one account will save you time, money, and stress. And it only takes a few minutes. If you’ve got multiple super funds, you can transfer them into one account by logging into the Australian Government’s myGov website, or contacting your preferred provider.

When you’re starting a new job, most employers will give you the option of either paying your super to their default fund or nominating one of your own. Taking the time to compare providers is essential, because your employer’s default may not always be best suited for your needs.

Whether it’s a retail fund operated by a bank, an industry fund, or another type of super fund, fees and benefits can vary significantly – and so can your insurance coverage. ASIC’s MoneySmart website has a handy guide to what you should look for in a super fund. And don’t be afraid to change providers if yours isn’t performing.

Just because you can’t withdraw your super until retirement doesn’t mean it shouldn’t be working hard for you. In fact, getting hands-on with your super is one of the most effective ways to maximise your benefits later in life.

As a rule, the younger you are – or the more time you have before retirement – the more risk you can accept when choosing an investment strategy for your super. Older Australians don’t have as many years for their super to recover from a potential loss, but taking on more risk early in your working life can be lucrative.

Consider speaking with a financial adviser about your investment strategy and your broader financial goals. You can go to the IFAAA website to find a certified independent adviser near you.

You can boost your super balance at any time through one-off or regular payments. And you’ll even benefit from tax breaks in the process.

If you make voluntary contributions to your super through a salary sacrifice agreement – where your employer makes additional contributions on your behalf above the compulsory rate – these contributions are taxed at a maximum of 15 per cent, which is generally less than your marginal tax rate.

Likewise, Australians can now claim a full tax deduction on personal super contributions from their take-home pay. For more information, visit the ATO.

Whenever you’re reviewing your super fund, it’s a good idea to double check your insurance coverage. Life insurance, income protection, and total and permanent disability cover is often cheaper and easier to manage through your super than via other avenues.

Contact your super provider to check your insurance coverage and premiums. When you’re comparing funds, read their product disclosure statements carefully. By choosing the right provider, and checking your insurance, you’ll have the coverage and peace of mind you need to secure your family’s future.

Staff writers come from a range of backgrounds including health, wellbeing, music, tech, culture and the arts. They spend their time researching the latest data and trends in the health market to deliver up-to-date information, helping everyday Australians live healthier lives. This is general information only and is not intended as medical, health, nutritional or other advice. You should obtain professional advice from a medical or health practitioner in relation to your own personal circumstances. The information in this article is general information only and is not intended as medical, health, nutritional or other advice. You should obtain professional advice from a medical or health practitioner in relation to your own personal circumstances.

Disclaimer:
The information in this article is general information only and is not intended as financial, medical, health, nutritional, tax or other advice. It does not take into account any individual’s personal situation or needs. You should consider obtaining professional advice from a financial adviser and/or tax specialist, or medical or health practitioner, in relation to your own circumstances and before acting on this information.