February 25, 2018

Superannuation: 5 Things to Consider

It’s very easy to just let your employer put contributions into your super fund, check the annual report from your super fund each year and leave it at that until you retire.  However, keeping an active eye on your superannuation, learning some superannuation basics in Australia and using some hidden superannuation tips can boost your super savings and give you a better standard of living in retirement.

Here are 5 ways you can boost your super and transform your financial future:

  1. Check how much you are paying in fees

Every superannuation fund manager charges you fees for running that fund. If your fund is charging more than one per cent of your account balance in fees you should reassess your fund against other competing funds to see if you would be personally better off moving your money. Fees may seem minor, but over 30 years they can have a huge effect on your eventual retirement benefit.

  1. Consider changing your investment options

Don’t just leave your money in a default investment option with your super fund. Look into the various options available within your fund. This is where you may need some financial planning advice. Depending on your risk appetite, will depend on your investment option for your superannuation fund. For example if you are conservative with your money and will get stressed out by volatile movements in your balance, then perhaps a more conservative investment option is for you. It’s worth exploring this with a good financial adviser.

  1. Consider changing your fund

If you are not happy with your fund or its performance you are able to change funds. This can be time-consuming but can be worthwhile. Look for a fund that shows strong past performance, charges reasonable fees and offers cost-effective life insurance and you could end up in a much stronger position than you would if you remained with your current fund.

  1. Make additional contributions

You can make additional contributions to your super fund up to a capped annual limit. Doing this can really boost your retirement savings.

There are two ways you can make these contributions: concessional (before tax) contributions and non-concessional (after tax) contributions.

Speak with your employer’s accounts department, your super fund or your accountant about how you can benefit from making extra contributions.

  1. Find your lost super

If you’ve held jobs in a variety of industries or have largely worked part-time, you may have money sitting in various superannuation funds. To find out if you have super you don’t know about www.lost-super.com.au to track it down for free. Once you have sourced any missing super contributions, roll them all over into your preferred super fund.

Final Thoughts on Superannuation

If you take the time and trouble to keep an eye on the progress of your super savings and follow the above hidden superannuation tips, you could be many thousands of dollars better off once you reach retirement age. Learning the superannuation basics in Australia is well worth while to boost your super savings and secure your financial future.

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How to Find Your Missing Superannuation in Australia

Sometimes you can lose track of small or old super balances. Fortunately finding lost super is easier than recovering a ‘misplaced’ wallet at home.

If you spent time working multiple casual or part time jobs you probably ended up with a few superannuation accounts. It is only recently that employees were free to have superannuation contributions go into an existing account.

Previously the employer would open a new account for you. Fortunately, you can now combine superannuation accounts, or in some cases cash out small balances.

If you’re getting a bit a superannuation advice or using a superannuation calculator to do some retirement planning, you should also do a search for missing superannuation. It’s dead easy and free, and you might be pleasantly surprised by what you find.

Here is how to find your missing superannuation:

Check with AUSfund and the ATO

Before 2014, small, inactive superannuation balances were transferred to AUSfund. The funds are held in owner’s name but combined with money from lots of different unclaimed accounts. You can check for your money at https://ausfund.com.au. You can claim and roll your money into another superannuation account if you find any that belongs to you.

Since 2014, superannuation balances have been sent to the ATO to hold. To check if they are holding any of your lost super, you will need to sign into the myGov website. Once you have an account, all you will need to check for missing superannuation is your TFN.

That’s it. All you need to do a quick search with AUSfund and with the ATO.

Combine your balances

If you do find superannuation, which belongs to you, can transfer the amount into your main superannuation account. Your current provider will be able to do this for you.

It’s a good idea to consolidate your superannuation into one account as it will make it easier for you to have a clear investment strategy. It also makes sense to keep your superannuation in the account with the lowest fees. Even small percentage difference have a huge effect on the amount you will have come retirement time.

Finding lost superannuation is quick and easy. Jump online now and search with AUSfund and the ATO.

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