Right now, it’s all about you – so you can set your super up for great things. The first step? Make sure it’s all in one place. If you’ve worked at a number of jobs there’s a chance you have more than one super account, which means paying more than one set of fees. It’s also worth thinking about topping up your super with extra contributions before life gets more expensive with a mortgage, or maybe kids.
Take the time to look at what your super is invested in. When you’re young you have many years ahead of you to weather any financial storms, so choosing a higher growth investment option might be worth it.*
Life gets a bit more serious
By default, life insurance (or death cover) and disability insurance - total and permanent disability (TPD) and/or income protection (IP) - is provided within super.
Not only can life insurance protect you if you’re diagnosed with a terminal illness, life insurance can help protect your loved ones financially if you pass away. You can also look out for yourself by checking or updating your IP to TPD cover.
When it comes to your career, if you start to earn more, consider salary sacrificing extra into your super. Find out more here
Maybe kids come along…
Raising kids can be one of life’s great rewards, but less time in the workforce equals less money going into your super account, and less when you retire.
Couples can share this load by adding a bit extra to the main caregiver’s super through spouse contributions or contribution splitting.
You may be able to take advantage of the government’s co-contribution to super if you are earning under a certain threshold and make an after-tax contribution to your super.
If relationships end
When couples separate, super can typically split as part of joint property. Best case scenario, an amicable decision of how much each person gets will be reached. If not, a court order to split the super might be necessary.
No matter what’s happening in your personal life, as you get older you should reassess the insurance you have in your super and who should get it when you pass away.
You might also want to review what your super is invested in; your needs will change as you get closer to retirement.
*Returns may be positive or negative. Past performance is not an indicator of future performance.