Your super milestone
What is your super milestone?
Birthdays, a new job, getting married, babies, divorce, kids growing up…we know that life is busy. With so much else happening, it can be easy to overlook your super.
Taking a little time now to set your super on the right track can make a big difference to what’s in your pocket at retirement. Read the information below for some tips for your super health check.
Ben, 22. "I'm just enjoying each day!"
You’ve just landed that first job in your career and you may just be wanting to enjoy yourself. Although retirement seems a long time away, starting early to set your super on the right track will make a big difference when it comes time for retirement.
A good first step when you’re starting out is to register for the member portal and make some choices for your super. Here are three actions young members can take now that could mean more money in the future.
Can you save by combining your super accounts?You may have had a few part-time jobs before this one, with a handful of small superannuation accounts. That summer at the café and other odd jobs. Those super accounts are still your money and you may be paying multiple sets of fees!
Consider consolidating all your super into one account. This can save on wasted fees and make it much easier for you to keep track of going forward. Taking 10 minutes now to combine your accounts could save you thousands in the longer term. Before you consolidate, get the full picture. Ask your super provider for information about any fees or charges that may apply, or any other information about the effect this transfer may have on your benefits, such as insurance cover, before deciding.
If you wish to claim a tax deduction for personal super contributions, you must lodge a notice of intent to claim a tax deduction with your original fund before you consolidate your super into another fund.
What investments are a good match for you?
Your super will be invested for a long time, so you need to have the right mix of assets working for you to get the best returns. When starting out, options with a higher growth assets may be more suitable for you1, as you will have time to recover from the ups and downs of the investment markets.A good starting point is to use our Risk profiler. This can help you answer some important questions about when you plan to retire, and how you feel about risk. From there, you can consider which of the Super SA investment choices suit you. If you are still unsure, you could consider talking to a financial adviser.
Can you save any extra?
Thanks to the effect of compounding (where you earn investment returns on your investment returns), putting away small amounts over a long time can help you boost your savings. Starting a good regular savings routine when you are young means you won’t need to make as many sacrifices later to try and catch up.
You may also qualify for matching contributions from the Commonwealth Government’s Co-Contribution Scheme.
Emily, 32. "My family time is precious"
It’s hard juggling it all, working, a social life as well as having caring responsibilities. You may have taken some unpaid leave and now feel you have some financial catching up to do. With added expenses like schooling and a mortgage, it’s important to know you are setting yourself up for the future.
Here are a few simple checks that Emily and those in a similar situation can do.
How are you tracking for retirement?
You’re working hard, so you want to ensure that you are doing everything you can to make your efforts pay off in retirement. With just a few clicks, the Projection Calculator can help you estimate what super you could have at retirement, and let you see how putting in extra contributions can change the outcome.1
Women also face unique challenges which can make it difficult to build up enough super. Super SA is committed to giving women the tools to take control of their super and gain financial independence. Head to Women and super to start your journey.
Are you adequately covered?
Unfortunately, the unthinkable can happen. What would it mean for you and your family if you died or got sick and couldn’t earn an income? Your latest Annual Statement (available in the member portal) will show you any insurance cover you might already have as part of your super. Take a look and think about your financial obligations – does the level of cover need adjusting?
What happens to your super benefits if you die?
If you die, your Super SA entitlement will be paid to your surviving spouse. However, if this is not your preference, you can nominate a legal personal representative (estate) so that your death benefit will be paid to your estate and distributed according to your Will. This is particularly important to keep in mind if you’re separating from your partner or in the process of finalising a divorce.
If you do not have a spouse, the entitlement will be paid to your estate. Either way, it’s important to make sure your Will is up to date.
Nearing or at retirement
Bill, 57. "More time for me"
Finally, the kids have left home and there’s a window for you to think more solidly about your plans for the future. You’ve taken life as it’s come but you realise you need to do a bit more to prepare for life after work.
Taking some actions now can help Bill and anyone in a similar situation enjoy the future.
How can you keep building?
Hopefully there’s a bit less pressure on the household finances now, so you could consider increasing your contributions to super. Unlike other funds, as a Triple S member you can salary sacrifice as much as you like3, this may give you some tax advantages.
Could a TTR help me reduce my hours but keep the same income?You could even start thinking about working less and having more time to live your best life, even before you retire. Read about the Transition to Retirement arrangement, where you could start accessing your super to while still working.
Where can I go for retirement planning advice?
You might find it helpful to do some more formal retirement planning with a licensed financial adviser (see below). They can review your circumstances and suggest strategies to help you reach your goals. If you are planning your retirement as a couple, you may wish to discuss your contribution decisions together to ensure you are optimising your super savings and any available tax concessions and rebates.
2 Subject to lifetime contributions cap of $1.65 million applies in 2022/23.
At Super SA, we encourage you to seek professional financial advice on your financial planning needs.
You can choose your own financial planner or you can take advantage of the service available through Industry Fund Services (IFS). If you don’t have an existing relationship with a planner, you can contact the Financial Planning Association and access their “Find a Planner” service to locate an FPA member near you. The financial planners at IFS can advise you about the options available to SA public sector employees.
IFS offer two advice pathways for Super SA members – Limited Advice and Comprehensive Advice.
If you would like to learn more about financial planning, or to make an appointment with an IFS planner, please call the Super SA Advice Administration team on 1300 162 348.
The schemes administered by Super SA are exempt public sector schemes and therefore we are not required to hold an Australian Financial Services licence to provide advice on our products. The information given in this presentation by Super SA is of a general nature only and has been prepared without taking into account your individual objectives, financial situation or needs. Super SA strongly recommends that you refer to the relevant Product Disclosure Statement (PDS) and seek independent financial advice before making any financial decisions. If you intend to invest in the Super SA Income Stream or Flexible Rollover Product, please refer to the relevant PDS for details of your cooling off rights.