The Association of Superannuation Funds of Australia (ASFA) is urging all Australians to get their super sorted as part of MoneySmart Week 2014, with a new guide designed to help people through the process in five easy steps.
ASFA CEO Ms Pauline Vamos says the earlier you get your super sorted, the better.
“The benefits of compounding interest mean that the earlier you are able to put extra dollars into your super, the more you will boost your retirement savings. This means for every extra dollar you can afford to put away, or every dollar you save on fees and other charges, you are providing a boost to your final retirement savings.
“This is why we encourage all Australians to spend an hour this MoneySmart Week moving through these five simple steps to help get their super sorted, and reap the benefits of having financial freedom in retirement that comes from having a bigger pool of savings.”
Five steps to getting your super sorted
| 1. | Get to know your super |
| “The better you get to know your super, the more comfortable you will be making decisions about it. Spend a few minutes finding out how to access your account and checking your balance to see if you are on track when it comes to saving for the lifestyle you want in retirement,” says Ms Vamos. | |
| 2. | Track down lost or unclaimed super |
| Use the Australian Tax Office’s SuperSeeker tool to track down your lost or unclaimed super, and transfer it into your active account. | |
| 3. | Check the options within your fund |
| “This means checking your insurance and investment options, to make sure they are the right fit for your individual circumstances. When it comes to insurance, make sure you have the right type, and enough to cover your financial needs if something unforeseen was to happen. The investment choice you make can also have a big impact on your final superannuation balance, so talk to your fund or planner about the different options available and then choose one that is the most suitable for you,” Ms Vamos says. | |
| 4. | Consolidate your accounts |
| “The more superannuation accounts you have, the more you will pay in fees. You might also be paying for insurance you don’t need, or can’t claim on. Over time this can put a massive dent in your super savings. Consolidating and moving this money into one account can, over time, save you thousands of dollars,” says Ms Vamos. | |
| 5. | Plan to save more |
| Figure out how much money you will need, and work out how much you can afford to put away now, for the lifestyle you want in retirement in the future. |
To download a copy of the booklet, click here.
For additional information and tools to help you get super sorted, visit www.superguru.com.au.
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