It’s a general perception that people see retirement as a far-off notion and not something they need to think about until later in life, especially those at the beginning of their working career. The reality is, the earlier you start thinking about it, the better. You could think of it as a savings account for your future!
According to Australian Bureau of Statistics
* men born in 2018 can expect to live to 80.5, women born in 2018 to 84.6. This means if you stop working at 60, you’re likely to need retirement income for at least 20 to 24 years.
It’s worth thinking about your super no matter what age and understanding what it means for you in the future. It’s important for you to make good decisions early on, as it could have a significant difference to your retirement.
Think about your future-self
Review your investment option to make sure it’s right for you
Your super is one of the largest sums of money you will ever have to manage. You can invest your superannuation in a stack of different investments.
However, it’s your choice with how you choose to invest your super to help grow your balance over the long term. Making this choice as early as possible can make a real difference to your future. Most superfunds will have a variety of investment options available and depending on your risk appetite and goals.
Ways to help grow your super
Life is a balancing act and people become accustomed to their lifestyle; living in a particular suburb, having regular overseas holidays, eating out a few times a week. Building your super now, may make it easier to sustain your lifestyle in retirement.
If your compulsory 9.5% employer contribution won’t be enough to sustain your lifestyle in retirement, making additional contributions
* to your super can boost your retirement balance to help achieve your future goals.
Consider financial advice
The clearer you are on your retirement goals, the easier it will be for you to put a plan in place. To ensure you are maximising all opportunities and taking the right steps, financial advice is a great place to start.
Check insurance options
Most funds provide insurance cover by default. It’s important you check and understand your insurance cover provided by your super fund and determine if it is the right cover for you. As your life changes, generally so will your insurance needs.
If you need more information
Rest hosts a range of
calculators on their website to help you forecast retirement income, work out how extra contributions can boost your savings, and check how long you can expect your super savings to last.
