When it comes to retirement planning, there are a lot of terms and concepts that can be confusing. In this series, we’ll help demystify some of the key terms you need to know.
Industry fund: An industry fund is a type of superannuation fund that is run by a particular industry, such as healthcare or manufacturing. These types of funds usually have lower fees than retail funds, and may offer other benefits such as discounts on industry-related products and services.
Inflation: This is the rate at which prices for goods and services rise over time. Inflation can have a significant impact on your retirement savings, as it reduces the purchasing power of your money. That’s why it’s important to invest in assets that will keep up with or exceed the rate of inflation.
Investment returns: These are the profits that are generated from investments such as shares, bonds, and real estate. Over time these returns can add up and provide a significant boost to our retirement savings.
Lost Super: Unfortunately, a lot of people have “lost” super. This is because they’ve had multiple jobs and/or moved around a lot, so their super is scattered all over the place. It’s important to try to consolidate your super so that you don’t lose track of it.
Further Reading
What Next?
Don’t be intimidated by the financial jargon. Taking the time to understand the jargon along with using the eairwoman app will give you greater insight into your overall financial health, and ultimately help you achieve your retirement goals.
