In the blink of an eye

Retirement is never a long way off and you will all be there before you know it. The introduction of compulsory super is one of the better government initiatives of the last 70 years and so it’s well worth it to pay attention to it and think about what you are, or aren’t doing, to optimise your retirement savings.

When should I start paying attention?

The simple answer is NOW. Whether you’re 25, 40 or 55, you can benefit from paying attention to your super. Whilst you can’t change the past, you can get on course to a better future. Super is intended to be your income when you no longer work and the level of that income will be determined by how well you managed your wealth creation strategies during your career, in particular your super.

Many people are complacent about super, viewing it as a bit of annoyance. Arguably, the younger you are, the less engaged in super you are likely to be – retirement seems like a long way away after all! But you will undoubtedly reap the benefits in later life if you optimise your super from early on in your career.

SuperWiser can help you to maximise the potential of your super. The right choice of product and investment strategy can help you live a more comfortable retirement.

Preservation, choices and destiny

Generally, your super is not accessible until you are old enough. The government has made an unprecedented exception recently as a consequence of the coronavirus pandemic. Australian’s can access up to $10,000 for the 2019-20 and 2020-21 financial years however there are a number of conditions that they must meet to qualify for a withdrawal.

In most cases, super is preserved until you reach your preservation age of 60 (those born prior to 1st July 1964 can access their super a little earlier – consult your financial adviser to find out your preservation age). At 60, you can access your super if you’ve retired from work. At the age 65, you can access your retirement savings and benefits whilst continuing to work if you choose to.

Those who have managed their super well over the long term may find that they have the option to retire at the age of 60. It’s also possible to access super between the ages of 60 to 64 through a transition to retirement arrangement which would allow you to go part time.

Taking responsibility for your super and making informed choices now allows you to take your destiny and your future into your own hands. Making the right choices now could mean an earlier and more comfortable retirement down the road.

Super and health problems

Whilst most of us will live to enjoy our retirement, some of us will face challenges to our health before we make it there – this is why many consider personal insurance. Super should be balanced between your savings strategy and personal needs and circumstances. Your attention to super now could be a lifeline to you and your family in the future should your health deteriorate resulting in death or total and permanent disability.

In the event of death, everyone should have the comfort of a binding nomination of beneficiary attached to their account. Statistics indicate that many people do not have a beneficiary nominated, a problem which slows down the payment of your super assets to your loved ones.

In the event of total and permanent disablement, the claims process can be lengthy and everyone in that situation needs someone who understands the terms and conditions of policy on their side representing their claim to the insurer and subsequently to the trustee – getting good financial advice can make a huge difference to both your savings and your peace of mind.

Time to get organised

By spending just a small amount of time each year on your super, you can expect to dramatically improve your retirement outcomes. Get a free evaluation from SuperWiser today, it takes less time than you spent reading this article and will get you on track to a better retirement!

This document was prepared and issued by Super Simpler Pty Ltd (ABN 74 150 240 421) a privately-owned company operating as a Corporate Authorised Representative (CAR No. 468 201) of AXIS Financial Group Pty Ltd (ABN 21 092 889 579, AFSL 233 680). The information contained within it is not advice. It provides general information only and does not take into account your individual objectives, financial situation or needs. You should assess whether the information is appropriate for you and consider talking with your financial adviser before making an investment decision. Information in this publication, which is taken from sources other than Super Simpler, is believed to be accurate. However, subject to any contrary provision in any applicable law, neither Super Simpler, nor its employees and directors, provide any warranty of accuracy or reliability in relation to such information or accepts any liability to any person who relies on it.