Superannuation - Young Independants
Do you know where your employer's super contributions go?
Your life is probably pretty full right now.
You'll be kicking off a career, renting your first property and enjoying an active social life.
If you have started to earn a regular income your employer is required to pay 9.25% (increasing to 12% by 1st July 2019) of your gross salary into an eligible super fund. But just because you don't see this money in your bank account each month, it doesn't mean you should forget about it. It's still your money, so make sure it's invested the way you want.
The first step to taking control of your super is to choose which fund your money is being paid into. You can either choose your own super fund or use the default fund offered by your employer.
Once you've decided on a super fund, make sure you take advantage of the features and benefits your fund provides, like insurance or multiple product discounts.
You don't have to use your employer fund if you don't want to. You can generally choose which super fund your employer contributions are paid into at anytime.
Do you know how many super accounts you have?
It's likely you've had more than one job, so chances are you have more than one super account.
In most cases, each time you start a new job a new super account gets opened for you. So many of us end up with multiple accounts.
The problem with having more than one super account is that you're likely to be paying multiple fees and keeping track of your super is a little harder. Plus, you may be doubling up on things like insurance, which could be more cost-effective if you held them all in one fund.
So, by having all your super in the one place, it's easier to take control of your retirement savings and make sure your investments continue to meet your needs.
The good news is that consolidating your super is simple.
The first step is to find all your accounts, some of which may have been lost over many years.
You then need to decide which fund you want to consolidate your super into. It's important to consider whether it offers investment options that suit your needs, now and in the future. Also make sure you don't exit a fun that provides insurances you need without considering replacement cover.
Have you considered the investment options available to you through your super account? What about insurance ?
Retirement might be the last thing on your mind - after all it's over 40 years away. But the choices you make now can bring a big impact on your future, so it makes sense to start planning as soon as possible.
Different super funds will have different features and fees, but one of the most important things to look at when choosing a super fund is the investment options available. After all, how your money is invested will determine how quickly your super grows.
But your super isn't just about retirement. You can get benefits from your super right now, such as saving money on your insurance.
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