Australians are showing increased appetite for taking control of their super, according to the latest Your Super Future report from ING DIRECT and the Financial Services Council (2015), which indicates a growing awareness of fund balances, fees and performance.
Want to make headway with your retirement planning? Here are our top tips for making the most of your super:
Get a reality check
Start by getting a snapshot of your super as it currently stands. Your annual statement should outline your super balance, any fees you are paying, and your fund performance for the financial year.
According to Our Super Future, 61% of Australians pay under $500 a year in super fees, while 20% pay more than $1000 a year. These fees may seem negligible, but over time they could make a substantial dent to your overall super balance – particularly if you have multiple super funds and are paying multiple sets of fees.
To help maximise your super, consider opening a no-fee or low fee fund which offers value for money and consolidate all your funds into just the one.
Know your goal
How much should you be aiming to accumulate by the time you leave the workforce? As everyone’s needs are different, the answer may depend somewhat on your current lifestyle, future plans and aspirations.
Our Super Future found approximately 46% of Australians consider $500,000 or less to be enough, while 39% feel they will need more than $1m. Try using a retirement planner to get an idea of how much you should be aiming for, and check how you’re tracking against your goal.
Balance your investments
Many super funds offer a range of investment options in addition to the balanced fund. Depending on your goals, life stage and attitude to risk you may be considering incorporate some growth assets in your investment portfolio to help boost your super returns.
Here are a few points to consider when choosing investments for your super fund.
Finally, if you have any burning super questions, need to clarify any sticking points, or are seeking solutions tailored to your circumstances; consider speaking to a financial adviser.
The information is current as at publication. Any advice on this website does not take into account your objectives, financial situation or needs and you should consider whether it is appropriate for you. Deposit products, savings products, credit card and home loan products are issued by ING, a business name of ING Bank (Australia) Limited ABN 24 000 893 292, AFSL and Australian Credit Licence 229823. ING Living Super (which is part of the ING Superannuation Fund ABN 13 355 603 448) is issued by Diversa Trustees Limited ABN 49 006 421 638, AFSL 235153 RSE L0000635. The insurance cover offered by ING Living Super is provided by Metlife Insurance Limited ABN 75 004 274 882, AFSL 238096. ING Insurance is issued by Auto & General Insurance Company Limited (AGIC) ABN 42 111 586 353 AFSL Licence No 285571 as insurer. It is distributed by Auto & General Services Pty Ltd (AGS) ABN 61 003 617 909 AFSL 241411 and by ING as an Authorised Representative AR 1247634 of AGS. All applications for credit are subject to ING's credit approval criteria, and fees and charges apply. You should consider the relevant Product Disclosure Statement, Terms and Conditions, Fees and Limits Schedule, Financial Services Guide, Key Facts Sheet and Credit Guide available at ing.com.au when deciding whether to acquire, or to continue to hold, a product. Before interacting with us via our social media platforms, please take a minute to familiarise yourself with our Social Media User Terms https://www.ing.com.au/pdf/Social_Media_User_Terms.pdf.