How Much Super Will I Need – Part 3: Changes in Expenses After Retirement

As we approach retirement, many of us are looking forward to a time when we can finally relax and enjoy life. However, it’s important to be aware that our expenses may change after retirement. For some of us, our expenses will actually go down after retirement. This is because we no longer have to worry about things like paying for childcare or commuting to work. Additionally, we may have paid off our mortgage by this Read more…

Choosing a Super Fund – Part 3: Super Fund Performance

Fund performance is typically measured by looking at the fund’s total return, which is the fund’s percentage gain or loss over a certain period of time, typically one year. When it comes to choosing a super fund, performance is definitely an important consideration. Super funds are required to disclose their investment performance annually. This information can be found on the fund’s website and product disclosure statement (PDS). When comparing performance of different funds, be aware Read more…

Building Your Super – Part 2: Voluntary Contributions

When you choose to add your own money to your super fund, these are known as voluntary contributions. Over time these voluntary contributions can make a significant difference to your final super balance. Salary Sacrifice: This is when you make contributions from your gross salary. That is, contributions taken out of your salary before tax. The advantage is these amounts are taxed at a lower rate of 15%. The other advantage is they can be Read more…

How Much Super Will I Need – Part 2: The Effects of Inflation on you Super Balance

Inflation eats away at your retirement money every single day, of every week, of every year! Therefore, it’s important to invest your money to offset the reduction of your spending power by inflation. What is inflation? Inflation is the rate at which prices for goods and services rise over time. In other words, inflation reduces the purchasing power of your money. The $100 you have today, won’t buy you the same amount in ten years’ Read more…

Choosing a Super Fund – Part 2: Investment Options and Risk

When it comes to choosing the right superannuation fund for you, it’s important to understand your risk appetite. Do you want a low-risk investment option, or are you willing to take on more risk for the potential of higher returns? Generally speaking, there are three main risk levels when it comes to superannuation funds: low risk, medium risk and high risk. Low risk investments tend to be more stable, with less chance of losing your Read more…

Building Your Super – Part 1: Employer Contributions

If you’re an employee working in Australia, your employer is generally required to make super contributions on your behalf. This is called the Superannuation Guarantee (SG). These employer super contributions are a percentage of your before-tax salary and are paid into your super fund. The contributions are in addition to any salary or wages you earn and are designed to help you save for your retirement. They are also in addition to any personal contributions Read more…

How Much Super Will I Need – Part 1: The ASFA Retirement Standard

If you’re like most people, you probably don’t think much about retirement until you’re nearing the end of your working life. But whether you’re years or months away from retirement, it’s never too early to start thinking about how you’ll support yourself during those golden years. One of the best ways to ensure a comfortable retirement is to plan ahead and set aside as much money as possible. But how much is enough? The industry Read more…

Choosing a Super Fund – Part 1: Different Types of Funds

There are various types of superannuation funds in Australia. As each type of fund has its own benefits and drawbacks, it’s important to do your research before deciding which one is right for you. The five main types of superannuation funds in Australia are industry funds, retail funds, corporate funds, public sector funds and Self Managed Super Funds. 1. Industry funds Industry funds are sector specific, and are usually set up by employers in a Read more…

Super Basics – Part 6: How can you make the most of your superannuation?

There are a number of things you can do to maximise your superannuation.  One is to make sure you are being paid the Super Guarantee. This is the minimum amount your employer must contribute to your super fund. You should speak to your employer if you are not being paid the Super Guarantee.  You can also make additional contributions to your super fund. This can be done through salary sacrificing or making personal contributions.  You Read more…

Super Basics – Part 5: When can you access your superannuation?

In Australia, superannuation is a long-term savings plan to help you financially in retirement. You can start paying into your super from the day you start work. In most cases, your employer will pay money into your super account (called the Superannuation Guarantee). The money in your super account can’t be accessed until you reach what’s called your ‘preservation age’. When you reach preservation age (currently, between 56 and 60, depending on your date of Read more…