Are you looking for advice or guidance on how to manage your superannuation? You have good reason to! Your superannuation fund will be one of the most – if not the most – important sources of income for you when you retire, so it’s a good idea to start thinking about it as soon as possible.
Here are a few things to consider when superannuation financial planning.
What is superannuation?
Superannuation is a fund for your retirement. Your employer makes compulsory contributions to your superannuation with every pay cheque; you might also want to make your own additional contributions to ensure you have enough money to fund a comfortable retirement. This is where superannuation financial planning can be helpful.
The money in your superannuation account is invested on your behalf by the super fund. The goal is to grow your superannuation so that it has a healthy balance by the time you retire.
Could I have more than one superannuation fund?
If you have held more than one job in your life – including part-time and casual jobs – then the answer is yes. Many people may have more than one super fund without realising it, as they may have started a new job and inadvertently signed up for a new super fund.
If you are signed up with more than one super fund, you’ll have to pay multiple sets of fees and manage multiple accounts. For these reasons, one step that some people recommend when it comes to superannuation financial planning is to consolidate your super funds.
What should I look for in a superannuation fund?
If you do, in fact, have a few super funds floating around, you might be unsure which one to choose and consolidate your other funds into. It’s easy to default to your employer’s preferred fund, but this will not necessarily help you to plan for your retirement. If you’re one of the majority of Australians who can choose their own super funds, it’s worth making sure to choose the right fund for you.
MoneySmart recommends looking for the following in your superannuation fund:
- Low fees
- Investment options that you are comfortable with
- Extra benefits or bonus contributions
- Good performance over at least the last five years
- Insurance options at a reasonable price
- Services available for members
Should I speak to a financial planner?
If you are finding superannuation financial planning confusing, or just want some professional advice on how to get the most out of your super, contacting a financial planner could be a good step.
Ensure that you choose an adviser who is qualified and experienced, so that you know that they have the knowledge and skills to provide the best advice. Crucially, make sure that the financial planner is not incentivised to sell you a particular superannuation product.
Many financial advisers are only qualified to provide recommendations for certain products, so make sure you carefully review your adviser’s financial services guide before committing. Once you find the right adviser, you can start your superannuation financial planning with the help of a professional.