What’s a resolution you’ve made for 2019?
Four ways to maximise your Super savings
- Consolidate your super
- Make more contributions
- Decide on how you’ll invest your super
- Set your super savings goal
We’ve all made those grand resolutions as the clock ticks down to midnight on New Year’s Eve. Going to the gym every day. Writing a novel. Learning how to juggle. The question is have you stuck to them or have some gone by the wayside?
Say what you will, but New Year’s resolutions are actually an awesome way to set goals that help you become the person you want to be. But who say you can’t set goals at any point in the year?
A big part of creating your ideal future is ensuring you have enough money to live a great life when you retire. That’s why it’s good to make goals or resolutions to actively take care of your superannuation. This year, try out some of these tips that will make your super work as effectively as possible.
Resolution 1: Consolidate your super
This year, I’m rolling all of my super into one account and I’m not going to set up any new ones.
It’s easy to let the number of super accounts build up, but this can be a waste of money. Fees can keep getting deducted from your accounts, even those that don’t have money going into them. Think about choosing just one that works best for you.
Consider things like fees, insurance and investment options to find the most suitable account. For instance, if you want greater control of where your super is invested, pick a fund with flexible investment options.
When you’re ready to roll over your super into one account, ING Living Super customers have access to RapidRollover which tracks down your existing super accounts and allows you to consolidates them into your ING Living Super account.
Resolution 2: Make more contributions
This year, I’m going to add a little extra to my super.
If you want to add a little extra kick to your super, making voluntary contributions is a great way to go. It’s good to understand the different types of contributions:
- Concessional contributions are those made before tax, like employer contributions and salary sacrifice. Ask your employer if they are able to redirect a portion of your pre-tax income to your super. This is a consistent way to build your super savings. Most people that are still working can contribute up to $25,000 each year.
- Non-concessional contributions are payments you make from your after-tax salary or personal savings. The limit for most people under 75 is $100,000 each year. Your spouse can also make contributions for you, and you might be eligible for government co-contributions if you earn less than a certain amount in a financial year..
For more information about the different types of contributions and the limits that apply, you can read about them here.
Resolution 3: Decide on how you’ll invest your super
This year, I’m going to invest my super in something that matters to me.
It’s easy to just tick the boxes on a super form and forget about it. If you want to be a bit more hands on, consider asking your super fund about investing in companies that mean something to you. Flexible investments help you create diversity in your super portfolio and reduce the concentration of risk.
The Customised option with ING Living Super gives you control to pick a range of investment options that suit your personality and ambitions. If you’re passionate about technology, you can choose to invest your super in some of the biggest tech companies on the S&P/ASX 300 or via ETF’s. Want to invest in companies that have similar ethical values to you? You can choose to avoid investing in organisations that have business activities related to tobacco or weapons production.
Resolution 4: Set your retirement savings goal
This year, I’m going to set a retirement savings goal and see how I’m tracking.
The New Year is a great time to think about the life you want to lead in your retirement, and how you want to get there.
One of the most helpful resolutions you can make is to get an understanding of how much super you will actually need and how you can get there. ING has a retirement calculator that allows you to enter your age, income and super balance to see your potential retirement income. If it’s not what you need, you can look into salary sacrificing or other contributions to boost it up.
Making your super work as effectively as it can is one of the best resolutions you can make. You don’t have to wait until the start of a new year to make these resolutions either. These are great habits to pick up at any time of the year that will set you up for success later on.
For more information on a super fund that’s flexible and will help you reach your goals, check out ING Living Super.
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