Superannuation – growing with you
From opening to retirement your Super will work for you at all life stages. Staying in control during all your life stages is the secret.
Younger members of super funds don’t always bother to monitor their super. Unfortunately they don’t realise that this can be a detriment to the successful investing and growth of their retirement balance. As well, the super can get lost if they move jobs, or address. At present the ATO is holding a staggering $17,500,000 in lost super according to Industry Super Australia.
Superannuation is a lifetime investment. It is a concessionally taxed investment that is kept to provide you with a retirement nest egg. Here’s how to think about it.
Your employer will require you to select a super fund, or join one nominated by the business.
At this point, the balance is low so if self-selecting, you need a fund that has reasonable fees, is able to move with you when you change jobs. You must provide your Fund with a tax file number, and at this time you will select a beneficiary to receive your fund in the event of your death.
The Middle years
As your life changes for various life events such as new jobs with higher salaries, marriage, children, buying a home, divorce, blended families, you must also remember your superannuation. Things to monitor:
- Changes of address
- Changes to beneficiary nominations if necessary
- Changes to your investment choices after considering current economic cycles
- Addition or cancelling life insurance premiums paid by the Fund
- At this stage you Fund can become a source of regular income
- Ensure that you have valid death benefit nominations in place
- Monitor you investment strategy to ensure there is enough liquidity to meet your income payments
Its really easy to monitor your Fund using the statements sent to you on a half yearly basis. The details on the statements will provide you with an overview of the fund earnings, expenses and costs. There will also be contact details to allow you to have a conversation with the Fund in relation to its performance.
So, how is your Fund peforming? Follow this link for more information.