03 September 2024
Super is your money, maturing with you. Even if retirement is some way off, super can form part of your financial strategy in your 30s and 40s. Not only is super one of the biggest assets you’ll have in your lifetime, but it could also help you save on tax now.
Super steps for the super busy
As you move through your 30s and 40s, you’re probably experiencing some big life moments. This might include growing your family, buying a first home, changing careers and caring for aging parents. And all that comes with competing financial priorities, as well as cost-of-living pressures.
If you’re feeling those pressures, you’re not alone. The AustralianSuper Retirement Confidence study found that only 46% of Australians feel confident they will live well in retirement1.
The good news is that your super fund can support you to take a holistic approach to your finances – balancing both your immediate needs and looking ahead to the future.
Super housekeeping
Taking care of your super along with your other everyday finances doesn’t have to be difficult or time-consuming. To start, here are a few actions to help get your super in order.
Find lost super
Australians have around $16 billion in lost and unclaimed super2. Some of that may be yours. And it’s easy to find out – just have two forms of ID and your tax file number handy.
TRACK DOWN ANY LOST SUPERConsider consolidating your super accounts
If you have multiple super accounts or you found lost super, consider consolidating it into one account3. It could help you avoid paying multiple sets of fees, meaning more of your balance stays invested. With just one super account, you’ll also reduce your admin load.Check your insurance
Check your insurance level and work rating to make sure they still suit you. Depending on the type of work you do, you might be able to save on insurance fees. Plus, making sure you have the right level of cover can provide peace of mind.
LEARN MORE ABOUT INSURANCE THROUGH SUPER
Calculate your future balance
Next, get a picture of where you stand, where you’re going and what steps you can take.
By answering a few quick questions, our Super Projection Calculator can estimate how much super you may have at retirement and how long it could last. Knowing how much super you could have helps you plan ahead – or consider steps to take that could improve your financial position in retirement.
USE THE SUPER PROJECTION CALCULATOR
Actions you can take now for your future
Now that you know more about your super, it’s easier to take action that’s right for you. And there are some simple things you can do today, whatever your path to retirement.
Know your investment options
As an AustralianSuper member, you can choose how your super is invested. There’s a wide range of options depending how long you want to invest for, how hands-on you want to be and how much risk you’re comfortable with. Understanding your options can give you control.
REVIEW YOUR INVESTMENT OPTIONS
Explore your advice options
AustralianSuper members can access advice options – from general over-the-phone advice4, to comprehensive face-to-face advice5. The right advice for your needs can give you peace of mind now while planning for the future.
Find tax-effective ways to contribute to super
If you’re able to, contributions6 can help grow your super in future and could help minimise your income tax now. The money you contribute to super is taxed at 15%. For most people, this will be lower than their marginal tax rate so you might be able to save on income tax. Use the Super Contributions Calculator to help you model the most tax-effective way you could contribute to your super.
As your career grows, your salary may grow too. To help you budget, it can be helpful to use pay rises as an opportunity to review whether you can add extra to your super or your partner’s super. Even a little extra super can go a long way. For example, if you started contributing $20 extra a week for a decade to your super when you turned 30, you could have $22,000 additional balance by the time you turn 677.
Discover ways to grow your super
References:
- The AustralianSuper Retirement Confidence Study was completed by a nationally representative split of Australians aged 18+ with a total same size of 5,061. The survey was completed in May 2024 by research provider Fiftyfive.
- Total of lost and unclaimed super as at 30 June 2023. Source: Australian Tax Office (ATO): Total lost (fund-held) and ATO-held super, published 26 February 2024.
- Before making a decision to combine your super, consider any fees or charges that may apply, and the effect a transfer may have on benefits in your other fund such as insurance cover. We recommend you consider seeking financial advice.
- There’s no charge for general advice about your super account. The financial advice you receive will be provided by Link Advice Pty Limited ABN 36 105 811 836, AFSL 238145 and will be their responsibility. Personal product advice provided may attract a fee, which will be outlined before any work is completed and is subject to your agreement.
- Personal financial product advice is provided under the Australian Financial Services Licence held by a third party and not by AustralianSuper Pty Ltd. Some personal advice may attract a fee, which would be outlined before any work is completed and is subject to your agreement. With your approval, the fee for advice relating to your AustralianSuper account may be deducted from your AustralianSuper account subject to eligibility criteria.
- Before adding to your super, consider your financial circumstances, contribution caps that may apply, and tax issues. We recommend you consider seeking financial advice.
- Unlocking the power of compounding returns, AustralianSuper. Example is for illustration purposes only, rounded to the nearest $1000. The actual benefits you receive will depend on a range of factors including future economic conditions, investment performance and legislative change. Investment performance is not guaranteed. AustralianSuper calculations 2023.
The following assumptions were made (to illustrate the above):
- The benefit shown is the approximate additional super balance at retirement at age 67, as a result of the 10 year additional contributions during the stated age ranges.
- No superannuation admin fees or super insurance premiums have been considered, as these are baseline costs that would be incurred regardless of the additional contributions.
- The additional contributions are after tax contributions, which stay the same in real terms for the period of contribution i.e. increase by 3.5% p.a. in nominal terms. All figures in today’s dollars. Using wage inflation of 3.5% p.a. as the deflator.
- Contributions occur evenly throughout the year with an investment return of 6.5% p.a. after investment tax and fees.