5 Steps to Ensure Your Super is Working for You Now

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TAKE CONTROL OF YOUR FUTURE

5 Steps to Ensure Your Super is Working for You Now

investment strategy superannuation
Sep 30, 2024

Your superannuation is more than just a future stash of cash—it’s a key player in your financial wellness, making sure you can kick back and enjoy life when retirement finally rolls around. But while your annual super statement might give you a snapshot, there’s more under the hood you need to check. Super should work as hard as you do, and these five steps will help make sure it’s pulling its weight.

 

1. Take a Peek at How Your Super is Invested

Think of your super like an investment engine, powering up your retirement fund. While most super funds tailor investments based on your age, the good news is you can customize it even further. Want more of a thrill? You might opt for more growth assets. Prefer to play it safe? Lean more toward conservative options.

 

 

Actionable Tip: If you’re unsure about your investment strategy, it’s a good idea to chat with a financial adviser. They can help match your investment choices with your life goals, whether you’re ready to strike while the iron is hot with high-risk, high-reward options, or prefer a slow and steady approach. Remember, don’t put all your eggs in one basket!

 

2. How’s Your Super Balance Stacking Up?

If you’ve been letting your super fly under the radar, now’s a good time to check how your balance compares with your retirement goals. According to the ASFA Retirement Standard, single retirees at age 67 need around $595,000 for a comfortable retirement, while couples will need around $690,000. But, these numbers assume you’ve paid off your home and other big expenses.

 

 

Actionable Tip: Not where you want to be? Consider options like salary sacrificing or adding extra contributions from your savings. Even a little extra can make a big difference over time. As they say, "good things come to those who wait"—but taking action now can accelerate your journey to financial security.

 

3. Check Your Employer’s Super Guarantee Contributions

If you’ve switched jobs recently or just haven’t checked in a while, now’s a good time to ensure your employer is contributing the correct super guarantee. Currently, employers need to contribute at least 11% of your salary into your super, and while this is done quarterly for now, it’ll soon be synced with every paycheck by 2026.

 

Actionable Tip: Check your super account regularly to ensure the right amounts are being paid. If something looks off, have a chat with your employer or HR. Where there’s smoke, there’s fire, and the sooner you catch any discrepancies, the better.

 

4. Review Your Insurance Coverage

Most super funds come with automatic insurance—typically life, total and permanent disability, and sometimes income protection. While this default insurance can be useful, it may not be tailored to your current life situation. For example, if you’ve recently bought a house, gotten married, or had kids, you might need more coverage. Alternatively, if you’ve paid off big expenses or your kids are financially independent, you might find that you’re overinsured.

 

Actionable Tip: Use an insurance calculator to gauge how much cover you actually need. If you’re underinsured or overinsured, it’s worth adjusting the settings to better fit your situation. After all, too much of a good thing can sometimes be too much.

 

5. Keep Your Beneficiaries in Check

You might not think about it often, but if you want your super to go to the right person when the time comes, you need to make sure your beneficiaries are up to date. Unlike other assets, your super isn’t covered by your will, so making sure you have a valid beneficiary is crucial. Without one, the fund will decide who gets your super, and it might not align with your wishes.

 

Actionable Tip: Double-check that your nominated beneficiary is current. Life changes, and so should your paperwork. Keeping this up to date is like “striking while the iron is hot”—it ensures your super goes exactly where you want it.

 

Final Thoughts: Take Charge of Your Super Today

Making sure your super is working for you is all about taking action now so your future self can reap the rewards. Whether it’s tweaking your investment strategy, checking in on your balance, or making sure your insurance is still relevant, these steps will help you take control. Time is money, and the sooner you get your super in shape, the better off you’ll be.