There’s a lot to love about super, and even though you can’t normally access this money while you’re in the workforce, super is likely to be one of your best assets for the future.
So it's worth getting to know your super.
A nest egg for the future
Superannuation is specifically designed to help Australians save for retirement. That’s important because we’re enjoying longer life expectancies, and have higher expectations of a quality lifestyle in our senior years.
But it takes money to pay for a rewarding retirement. And that’s where your super comes in.
Growing your super
Your super grows while you’re in the workforce through a combination of contributions to your fund and investment returns earned on those contributions.
Your employer is required to make contributions on your behalf worth 9.5% of your regular wage or salary. But you can also add to your super, and it makes sense to do this.
Super is very lightly taxed, so more of your money goes to funding your retirement rather than being paid to the tax office. This can make it worth speaking to the boss about salary sacrificing super contributions from your before-tax wage, or making contributions from your own pocket using after-tax money.
Annual limits apply to the amount you can add to super each year, and your Mortgage Choice financial adviser can let you know whether any additional contributions you make could exceed these limits.
Choosing your super fund
Over the course of your working life, plenty will happen. In our busy lives it can be easy to lose track of your super. In fact, 6.3 million super accounts are lost or unclaimed, with a total value of just under $18 billion1.
One of the best ways to keep track of your super is to select your own fund. Or you may prefer to take control of your own nest egg with a self-managed super fund.
This is an area where we can offer tailored advice, so you can be sure the super option you choose is right for your needs.
Drawing down your super
When you’re finally ready to hang up your work boots, your super can be accessed in a variety of ways – either as a lump sum, or you can use the money to invest in a private pension that provides regular money to live on. Or, if you choose to wind down your working week gradually, a transition to retirement pension can let you top up your working wage with payments from super.
The way you access your super can impact any tax you pay on your nest egg. So it is essential to speak with your Mortgage Choice financial adviser before making a final decision. It’s important to make every dollar work hard in retirement, and great advice can be the best investment for this life stage.
With your super sorted, you can enjoy your career knowing your superannuation is continuing to work hard in the background, building wealth for your future.