Changing a few simple habits can make a huge difference to your future Superannuation balance.
These small changes are easy to stick to with dedicated planning to ensure you are on track to achieve your Super goals. Below are the top 5 things you can set in motion now to make 2022 a positive year for your nest egg.
All you need to do here is decide how much you want to put towards your retirement super fund this year. Once you have your goal set, this alone will be enough to keep you focussed and motivated to save and achieve your 12 month goal. The added bonus is that you will receive compounding interest, on the principal investment and your interest, effectively earning interest on your interest! Over a period of time, these interest injections can boost the returns on your initial investment, so the longer the investment period, the higher the amount of compound interest paid.
You can do your own calculations on how much you can afford to save or you can contact WealthSmart for professional financial planning and superannuation advice.
Funnelling some extra cash into super can have a big effect on your retirement savings. Put together a budget and work out how much you plan to save and spend in the next 12 months. All the small things add up. Try cutting down on little luxuries, take your lunch to work, make coffee rather than buy, buy bulk to save. Push this extra money into your super to work towards your saving goal. You may also want to consider salary sacrifice by your employer. This means a portion of your salary automatically goes towards super, pre-tax. Keep in mind that super is taxed at a much lower rate (15% rather than 32.5 cents in the dollar) on the average income. The added bonus is a tax benefit of reducing your taxable income and paying less tax.
If you’re lucky enough to receive a tax return, use it to boost your super. This is a great way to give your super account a boost mid-year, without feeling like it’s a pain to your hip pocket.
Be sure to review, review, review. Checking the health of your super fund regularly will ensure you know exactly how you are tracking towards retirement. Every six months you should receive a member statement which outlines the balance, investment returns and tracks your contribution history. Reviewing statements at the beginning of the year is a good time so you can see progress and set targets for the coming year. Keep in mind you can make adjustments during the year if financial circumstances change so reviewing your super regularly is imperative.
With the current economic environment slowly moving back to ‘normal’ you may have changed jobs or take on casual work. Over time you could have had several different jobs and tracking down your super can be tricky. Locating your super and consolidating it is a must! You could be paying unnecessary fees on accounts that will erode your super. The good news is it’s easy to check on how many funds you have through the ATO website. Lost or unclaimed super can be recovered and put towards your retirement balance. For advice on consolidating super, get in touch with our experienced team on 1800 765 100.
General advice warning. It does not take into account your objectives, financial situation or needs. Before acting on any information, you should consider the appropriateness of the information provided and the nature of the relevant financial product having regard to your objectives, financial situation and needs. Should you require any help please contact Wealth Smart on 1800 765 100.