What is a Super Review?

Super is traditionally something we do not give much thought to. It is a long way off, and depressing to look at as it reminds us of a financially tight time, right?

It does not have to be that way. With a Super Review, we will ensure that your super is set up correctly so that you will not have to make any sacrifices further down the track and you can keep on enjoying the lifestyle that you want. It is never too early to conduct a Super Review – the earlier, the better. With market uncertainty, knowing your financial position is crucial to moving forward with investments, especially your super.

Young people do not tend to think about super. The general mindset is that they have loads of time before they need to worry about it, but what you do now can make a massive difference to the total amount of super you end up retiring with. There are some easy actions that you should take immediately to help your super along, such as:

  1. Keep the one super fund as you change jobs. This reduces paying multiple sets of fees with more than one super fund which can save you a small fortune in the long run.
  2. Check your eligibility for the government co-contribution scheme. You could be earning a contribution of up to $500 per year from the Government (check here if you meet the criteria) to your super.
  3. Consider incorporating family and personal life insurances with your super. Insurance premiums can be deducted from your super fund instead of your bank account. It is a no brainer for peace of mind.

A Super Review in your 30’s and 40’s should include consideration around making salary sacrifices. Forfeiting a portion of your pre-tax income into your super is a terrific way to save on tax. If you are younger than 50, you can contribute up to $30,000 before you become taxed extra. For over 50’s, the tax-free threshold has recently increased to $35,000, so there has never been a better time to consider increasing your extra payments into your super. When you reach your 50’s, you should almost be able to smell all that money you have been putting away for over 30 years.

Furthermore, if you have a family, it is definitely worth taking the time to fill out a binding beneficiary nomination form. This ensures your family is covered should anything happen to you. It is also essential to review who is on the nominated list every few years. Remember, if you have jumped between jobs, be sure to check that you are still operating under the one super fund.

In the end, the main purpose of a super fund is to preserve your money while it grows, and a Super Review will ensure your super is set up correctly and will look at possible alternatives where your super may be more effective. If your fund is in high-risk investments such as shares, it may be worth changing your investment to a low-risk alternative such as cash. A major market collapse right before your super becomes available is the worst possible scenario, but, unfortunately, it does happen from time to time. It may be worthwhile, as you have more time available after retiring, to take a more hands-on approach to your super and possibly self-manage your fund. It is also worth revisiting your nominated beneficiaries, to ensure they are up-to-date.

A Financial Planner is the best place to begin when it comes to your super; they will conduct a thorough Super Review and ensure it is in-line with your retirement plans. They will look at the various options available to you such as buying a property with your super, self-managed super funds and consolidate any lost super. They will assist you in tailoring your super to fit whatever stage of life you are at. If you have not begun planning your retirement, what are you waiting for? Putting off your Super Review could lose potential bucket loads of retirement money! Our financial planners can help you get started.