Five summer savings tips to boost your retirement

Font Size:

With the quieter summer holiday upon us, now might be a good time to make some super simple changes that could make a lifetime of difference in retirement.

In the YourLifeChoices’ Retirement Income and Financial Literacy Survey, almost three-quarters of all respondents were convinced or unsure that their retirement savings would not last.

According to Industry Super Australia head of research Dr Nick Coates there are five easy steps that you can take now that will boost retirement savings.

“There are five easy tips to getting your super right and most can be done from the comfort of your deck chair, beach towel or at home,” Dr Coates explained.

“Check you are being properly paid super, consolidate accounts, compare funds, select the right investment mix and make small contributions.

“With the Super Guarantee set to rise to 12 per cent it is even more important tomake sure you are getting paid your full legal entitlement and that the fund is working for you.”

Dr Coates’ five steps to boost your retirement savings are:

1. Check with your fund to make sure you are being paid your full legal super entitlements. Unpaid superannuation impacts one in three workers and while most bosses do the right thing, there are still some employers who deliberately rip off workers, he says. And with the super guarantee rate legislated to start increasing next year it will soon be even more important to check that the full amount is being paid.

2. Consolidate your super funds into one account; finding lost or unpaid super is simple now using the Australian Tax Office tools.

3. Compare your existing super fund with others in the market to make sure it is meeting your needs. Fees and investment performance are important factors to consider. Remember, long-term returns are what matters. Compare funds over five years or more. Dr Coates says that being a member of an Industry Super Fund puts you ahead of the others because of their low fees and strong performance history (of course remember that past performance is not a reliable indicator of future performance). The Productivity Commission found underperforming funds can cost members up to $500,000 in savings when they retire. This could be the difference between retiring at 65 or 67.

4. Make sure the type of fund is right for you. Choosing your super investment strategy is like making the perfect beach cocktail – you need to get the mix right. Make sure the investment strategy matches your needs and appetite for risk – which your fund can help you with. Also be sure to check the insurance coverage is the right fit for you and your family.

5. If you get some type of windfall, consider putting it in your super fund. It is a tax-effective way to make savings and with the powers of compounding interest, a little invested in super now makes a big difference in retirement, says Dr Coates.

What steps have you taken to boost your retirement savings?

If you enjoy our content, don’t keep it to yourself. Share our free eNews with your friends and encourage them to sign up.

Join YourLifeChoices today
and get this free eBook!

Join
By joining YourLifeChoices you consent that you have read and agree to our Terms & Conditions and Privacy Policy

RELATED LINKS

What are the rules regarding late super contributions?

Terry has been blocked from making a contribution to his super account and wants an explanation of

What are your options when you can’t keep working?

Tina doesn't think she will be able to keep working up until her pension age.

Can you put inheritance money into super?

Sue has not hit pension age but wants to know if putting inheritance money into her super will

Written by Ben

1 Comments

Total Comments: 1
  1. 0
    0

    Members need to assess any insurances held in their fund before switching their benefits into just one fund, as it could turn out to be a very expensive exercise.


FACEBOOK COMMENTS



SPONSORED LINKS

continue reading

Entertainment

Friday Funnies: Short jokes for the shortest month

February flies by too fast, just like these short but sharp jokes. What is the recipe for Honeymoon Salad?Lettuce alone...

Food

Succulent Spice-Roasted Salmon

These little salmon bites are something I've made time and time again over the years and this method of roasting...

Photos

How to take great pictures of gardens

If you've never been too good at taking pictures of your beautiful blooms, now's the time to brush up on...

Aged Care

Paid on par with cleaners: the broader issue affecting aged care

Paid on par with cleaners: the broader issue affecting the quality of aged care Ben Farr-Wharton, Edith Cowan University; Matthew...

Food

Researchers fear diet produces ‘untoward effects on the heart’

The keto diet, lauded for its purported fat-burning capabilities, could be bad for your heart, according to new research. The...

COVID-19

Vaccine overdose cases raise questions over doctor training

Australia's vaccine rollout suffered a major hiccup, with health minister Greg Hunt revealing on Wednesday that two elderly residents at...

Retirement Income

Why middle-income Australians are the big losers in retirement

Australia's middle-income earners are losing out when it comes to retirement income. That's the view of Mercer's senior partner, David...

Food

Nine food and heart health myths busted

Should you cook with butter or olive oil? Is that drink of red wine protecting your heart? Pink Himalayan salt is healthy, right? There...

LOADING MORE ARTICLE...