The latest data from the Australian Bureau of Statistics indicated the median super balance of men aged 55 to 64 was $183,000, and for women, $118,600. This signalled a worrying gap, as the Association of Superannuation Funds of Australia recommended an individual have $545,000 to comfortably retire, and $640,000 for a couple.
As many Australians looked to recover from early-release super withdrawals they’d made in 2020, and faced the reality of working longer, RACQ Bank’s Eszter Cathcart offered some tips on how to get superannuation back on track.
“If you don’t have alternative plans, superannuation can be critical to a comfortable retirement, and that’s why a regular check in, or making a few tweaks along the way, can help build that balance up and give you confidence that it’s tracking in the right direction,” Ms Cathcart said.
“Regardless of your age, there are some simple things you can do today, to help you benefit in the future.
“Start by looking to consolidate any old super accounts into one, so any super you may have sitting across multiple funds isn’t being chewed up by fees. Make sure you check for any insurances you may need before you close a super account.
“Look at the fees your preferred fund is charging and shop around to see if they’re competitive – over your working lifetime, keeping these account fees as low as possible could really help you get to the healthiest balance possible at retirement.
“Look at how your superannuation is invested as this can make all the difference in retirement. The default option that was selected for you, may not suit your ongoing needs and should be reviewed.
“Once you’re happy with the fees, charges and have selected one fund, make sure your insurance cover is adequate – as confronting as it is, you’ll need to make sure you and your family are covered in the event of your death or disablement.”
Ms Cathcart said it was also vital Queenslanders understood the importance of securing beneficiaries and the rules on who could be nominated as one, as many get this part wrong.
“If you do pass away, you want to ensure your super goes to the people you love the most, so enlist beneficiaries with your fund, and ensure you have a will drawn up by a solicitor to give you added protection that your money will go to your loved ones,” she said.
“Don’t leave it until it’s too late to make the changes you need to. Log into your super account today, combine lost funds into one account and make sure your super is working for you.”
RACQ’s superannuation health check tips:
1. Consolidate old super accounts so your money isn’t being chewed by fees
2. Look at the fees your fund is charging and choose one fund that’s competitive
3. Look at the risk level your super is at, and get a trusted financial advisor to assess whether it’s at the right level for your age
4. Look at insurances. Do you have the right cover in the event of your death or disablement?
5. Nominate beneficiaries and develop a will – this will ensure your loved ones receive your super when you pass away
6. After looking at your budget to make sure you can afford to, consider salary sacrificing.
The information in this article has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained in the document is general advice and does not take into account any person's particular investment objectives, financial situation or needs. Before acting on anything based on this advice you should consider its appropriateness to you, having regard to your objectives, financial situations and needs.