Your superannuation is a vital part of your financial future, so it’s essential to make sure it’s healthy and working for you. Just like you would get a physical checkup, a regular “Super Health Check” can help you optimise your retirement savings and protect your financial well-being. You can find out how we can help you with your superannuation review here.
Superannuation Fundamentals
What is Superannuation?
Superannuation is a type of savings plan designed to help individuals save for their retirement. It is a compulsory savings plan for Australian workers, with employers contributing a portion of an employee’s salary to their superannuation fund. Superannuation funds are managed by a trustee, which is responsible for investing the funds and paying benefits to members. The primary goal of superannuation is to provide a financial safety net for individuals in their retirement, ensuring they have a comfortable and secure financial future.
Choosing the Right Super Fund
Choosing the right super fund is crucial for securing your financial future. When selecting a super fund, consider your personal circumstances, investment goals, and risk tolerance. You can choose from a range of super funds, including industry funds, retail funds, and self-managed super funds. Consider the fees and charges associated with each super fund, as well as the investment options available. Look for a super fund with lower fees, a strong investment track record, and a range of investment options to suit your needs.
Here’s a 5-Step Superannuation Health Check to get you started:
1. Consolidate Your Super Fund:
Multiple super accounts mean multiple administration fees, eating into your hard-earned savings. Use the ATO’s online services to track down lost super and consolidate your accounts into one. This can significantly reduce your administration fees and boost your overall balance.
Important Note: Before consolidating, review your insurance coverage. Make sure you’re still covered for life, total and permanent disability, and income protection insurance.
2. Review Your Investment Strategy and Fees:
Your superannuation investment strategy should align with your risk tolerance and retirement goals. Actual returns can fluctuate significantly from year to year and may differ for individuals, highlighting the importance of personal circumstances in investment outcomes. Are you too conservative, or are you taking on too much risk? Review your investment options and adjust your investment mix as needed. Even small changes can have a big impact on your super’s growth over time.
3. Assess Your Insurance Needs:
Most super funds offer insurance products, but are you adequately covered? Review your life, total and permanent disability, and income protection insurance to ensure you’re protected without paying for unnecessary coverage that’s eroding your super balance.
4. Nominate Your Beneficiaries:
Your superannuation isn’t automatically covered by your Will. Nominate your beneficiaries to ensure your super goes to the people you want to receive it.
5. Update Your Details:
Make sure your contact information, address, and other details are up-to-date with your super fund. This will ensure you receive important updates and communication.
Assessing Your Current Superannuation
Checking Your Super Fund Balance
Regularly checking your super fund balance is essential to ensure you’re on track to meet your retirement goals. You can check your super fund balance online or by contacting your super fund directly. Review your super fund statement to understand your current balance, investment options, and fees. Consider consolidating your super accounts into a single account to simplify your finances and reduce fees. Additionally, our Advisors at Insight Wealth Planning can help you review your investment options to ensure they align with your risk tolerance and financial goals.
Take Control of Your Super Balance:
Being proactive about your superannuation is essential for a secure financial future. Past performance is not a reliable indicator of future performance, so it is important to consider future outcomes when making investment decisions. By taking these simple steps to optimise your retirement savings, you can significantly enhance your financial security.
Don’t delay! Start your Super Health Check today by contacting Insight Wealth Planning!