With 2022 in full swing, you may (or may not) be on track with your new year’s resolutions. Maybe you planned to clean up your diet, exercise more or start a new hobby.
When we think about new year’s resolutions, we don’t often take into account our financial goals. Alongside your new wellness routine, setting goals for your finances should be top priority.
Have you thought about where you’d like to be financially in the future? Where would you like see yourself in 12 months, five years or thirty years?
Whether you’re nearing closer to retirement or you’re still many years away, here are 6 simple steps you can take in 2022 that can make a huge difference to living your dream life in retirement.
1. Consolidate your super into a single account
Over time, many of us have accumulated multiple super accounts. Consolidating your super into a single account is one of the most important steps you should take to ensure you’re making the most of your retirement savings.
Consolidating your super is a simple yet effective way to reduce unnecessary fees and often insurance premiums that you may not even know you’re paying. Being able to see your super in one account makes it easier to keep track of and manage your savings as well.
You can consolidate your super by logging into your myGov account or giving Compare Your Super a call on (07) 5591 9577 to discuss other possibilities.
2. Make extra contributions
Making extra contributions, no matter how small can make a huge difference over time.
The benefit of compounding interest can have a powerful impact on your retirement savings.
Depending on your work status, you can make extra contributions in the following ways:
Voluntary contributions – These are payments made after tax as either a one off or regular payment. If you are self-employed it’s likely you are responsible for your own super contributions which are classified as voluntary contributions.
Salary sacrifice – if your employer pays super on your behalf, you may be able to pay some extra salary into your super fund before tax.
Making extra contributions may also mean you’re eligible for a government co-contribution and they’re also tax free!
3. Check your details are correct
Sounds like a no brainer, but it’s important to ensure your contact details are up to date. Being able to login to your super account and receiving regular communication from your fund means you won’t miss out on important announcements or changes with your fund.
Keeping your details up to date also ensures that your super doesn’t become lost or forgotten about.
Set yourself a reminder in your calendar twice a year to do a check-up on all your accounts to make sure your contact details are current.
4. Track down any lost super
In 2021, Treasury estimated that there was around a staggering $13.8 billion in lost or inactive super accounts in Australia.
If your fund has been unable to contact you or there has been no contributions made in over 12 months, your super will be treated as lost and it will be reported to the Australian Taxation Office (ATO) to be claimed.
There are some simple tools you can use to find any lost super and we recommend logging into you’re myGov account to make sure all of your super is accounted for.
5. Consider your investment options
Superannuation shouldn’t be a one size fits all approach. If you haven’t made an investment option, your money is likely invested in a default investment option based on your age and income which may not be the ideal solution for you.
At CYS, we understand that everyone’s situation is unique, and we all have different goals and ways we envision our retirement.
Rather than rely on industry norms that provide average returns as most funds do, Compare Your Super established a strategy which is less reliant on stock markets and more geared toward a modern investing environment.
6. Speak to a professional
Speaking with an expert who has done the research, analysis and comparisons can be extremely worthwhile. A financial adviser can clearly explain where your super can be better invested and how it will impact your future removing the guesswork for you.
They can also guide you through the process and look at your individual circumstances to find the best solution for you. A good financial adviser will know the industry inside out and understand there is no one size fits all approach when it comes to your super.
Small changes can make a huge difference to your retirement, so don’t procrastinate any longer.
To find out more, book a consultation with one of our Compare Your Super – Superannuation specialists.