What’s the second biggest asset you’re most likely to accumulate in your lifetime after your home? Hint: it’s not your car. Give up? It’s your super. Yep. That chunk of money that gets put away every fortnight sure adds up. Yet, we don’t really pause to give this a second thought. In fact, some of us don’t even see it as our money.
Why is super so important?
Because it is your money. And what you do with it today determines the kind of lifestyle you will enjoy in your retirement. Think of it as your savings account of the future, so you can keep on doing the things you love. So here are a few helpful hints to get you on your way to making the most out of super.
1. Take control.
A lot of Australians simply stick with their employer nominated super. If you have a choice, pick a super account that’ll help you achieve your goals and suits you.
2. Don’t double dip.
If you’ve worked more than one job, chances are you have more than one super account. A little bit of housekeeping here will not only save you the hassle of managing multiple accounts, you may also save on fees and insurance premiums. Consolidating is easy. You can do it with a few clicks.
3. Watch out for the ‘F’ word
We mean fees. Over time, they can burn a big hole in your retirement income. Just how big a hole? Annual super fees can vary greatly from fund to fund so it’s well worth doing your research. Check and compare the fees of your existing super fund with other providers. Are you getting the best value? Remember, if you have more than one super fund you could be losing even more in fees.
Over time fees can have a dramatic effect on your overall retirement balance and can make a real difference to the quality of your life – whether that’s being able to stop work earlier or going on all the adventures you’ve looked forward to. ING Living Super offers competitive fees, and you can open an account and find missing super online in minutes. (link to landing page).
(Deep breaths). If you want to know how much fees could be costing you, try this calculator.
4. Top up to be on top.
With the cost of living rising all the time, one way to increase your retirement income is salary sacrifice. Not only could you be giving less to the taxman, the amount stacks up over time. Want to know how you can boost your super? Check out this handy retirement planner. Don’t forget to keep an eye on your contributions caps to avoid any unnecessary excess contributions tax.
5. Match your options to your goals and life stage
Your choice of investment strategy should be guided by the retirement lifestyle that you want, but it’s important to balance growth with risk. Generally, when you’re young, you can afford to take more risks. But as you near retirement, you may want to switch to less volatile options. Super can also cater to different levels of comfort and investment knowledge. If the mention of Exchange Traded Funds makes you go cross eyed, you can choose Living Super’s balanced option. On the other hand, if you fancy yourself as a Warren Buffet of sorts, you have the option of trading shares online, in real time.
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 Home and Contents 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.