Don’t leave it too late to do something about this!
We encourage all employees to check on their superannuation balances now to ensure they will have enough money in retirement.
The Association of Superannuation Funds of Australia (ASFA) recently released new figures calculating exactly how much people earning an average annual salary of $80,000 should now have in their super fund.
It found a 32-year-old employee should have $45,000, a 42-year-old should have $148,000, a 52-year-old should have $285,000 and a 62-year-old should have $465,000.
Can you "top up" your Super?
If you are not where you think you should be, there are catch up measures that you can immediately start using. Remember, extra super contributed now will have a compounding impact over time, and this makes it easier to achieve your target super balance at retirement.
ASFA’s retirement standard says to obtain a comfortable retirement, singles need $545,000 once they stop work and couples need to $640,000. This is presuming retirees own their home outright and have good health.
Employers must deposit 9.5 per cent of your ordinary time earnings into your super fund.
All workers are eligible to receive super if they are aged 18 or older and earn more than $450 in a month.
Employees can tip extra into their funds but you must be mindful of the caps.
Concessional contributions (pre-tax) are capped at $25,000 per year, while the cap for non-concessional contributions is currently $100,000 per year.
For example, if a 25-year-old puts $50 extra a month into their super, they will end up having an extra $175,000 by age 65.
That’s compound interest based on a long term growth fund performance of 6.5% per year.
Remember the 3 C's with Super
Right now is a good time to check how your super is travelling.
Here are the three C’s - check, contribute and consolidate
It’s important to continue to check to see that your choice of investment options and insurance still suit your needs as they can change over time. It might be the case that consolidating your super is in your best interest.
Contact our qualified wealth team TODAY and they can help you review your super and discuss options to help you grow and protect your wealth!