taking charge of your financial future, solo

If you're single, widowed or divorced and in your late 40s or 50s, you might’ve wondered about your financial future: Will I have enough? Will I be okay?

You may be earning one income, but you’re making all your own decisions. Sure, the stakes may be higher than they are for couples, but so are your opportunities.

In fact, the next 10 to 15 years could be the most financially powerful of your life, because of where you're standing right now.

You're likely earning near your peak, you know yourself better than ever, and there could be easily another 3 and a half decades ahead of you.

The decisions you make now will compound across every year of it: and you have the benefit of time.

Here are 5 things to consider that can make flying solo a source of freedom.
 

1. Bring your super together

Old super accounts from old jobs can cost you in fees and costs, including charging you for insurance cover you may not need. Check for cover before you combine your super, as you could lose the cover when closing the account. And the sooner you bring all your super into one place, the sooner you could stop paying multiple sets of fees and have more of your balance invested for potential compounding returns.

Combine your super > 
 

2. Let compounding do the heavy lifting

Your super grows on a base that keeps expanding. Think of it like a snowball: as it rolls, it gets bigger, and the earlier you start, the more time compounding has to potentially grow your super balance. And as a single person, growing your super can help support your independence, and your ability to choose how you live the rest of your life.  

Find out more about compound interest >
 

3. Take advantage of the tools designed for this point in your life

Life can shift in ways that creates new opportunities. You might finally be earning decent money after years in the system. You might be moving into a more senior role. With an income that’s solely for you, you can actively choose what you do with your money. You could consider before-tax super contributions (salary sacrificing, catch-up before-tax contributions), and the bring-forward rule for after-tax contributions (for example inheritances, redundancy payouts, property settlements). They all help you put more into super when opportunity arrives. 

Contribute to your super >
 

4. Match your investment strategy to your real timeframe

By now, you also know yourself better. You make sharper decisions. You waste less energy on things that don't serve you, including making sure you’ve got the right investment strategy that suits you.

You may be investing for another 15 to 20 years, which makes you a long-term investor. Staying too cautious with your investment strategy may cost more over decades than short-term market dips. And as a single investor, you have total control over your choices (including when to get advice).  

Get advice on your investment strategy >
 

5. Protect what you're building

As a single person, you may not have a second income to fall back on if illness or injury strikes. Check what income protection and death insurance cover you already have with your super. You may have more than you realise.

Review your insurance >

It’s also wise to check and update your beneficiaries – that's fancy speak for who will get your super when you die. As life goes on, it’s important to review your nominated beneficiary and what type of nomination you’re making. Non-lapsing binding death benefit nominations are a more recent option and can be made easily in your online account. 

Check your beneficiaries >