by Kelvin Gough and Gary Kosover.
Most people are oblivious when it comes to knowing how much money they have in their superannuation account. Many people don’t know what percentage of their wage is being contributed into their super (the minimum should be 9.25% of your wage) or even the name of their superannuation fund, yet an average couple needs about $1 million to live comfortably for more than 20 years of not working after they retire.
Given this is a fairly big sum of money, you’d think most working people, (including young adults) would put some focus on their retirement savings. Most people however, are focused on the costs of day-to-day living like food, utility bills and mortgage repayments. Not to mention medical bills, holidays, entertainment and personal loans.
If you’re planning to retire around the age of 60 and you also like the idea of living until the age of around 80, then you’d better start saving, or at least start to pay more attention to your superannuation balance.
Make sure you know exactly what the name of your fund is and what they invest in. Track and consolidate lost super spread across more than one fund. Or if you are self-employed; take a look into potential tax concessions available to you. If possible contribute more than the minimum, recommended amount and get advice on how to invest your super and reduce the amount of tax you pay as early as possible.
In our opinion your super fund should not be overlooked. It should be treated like your other bank account. It’s your money, your retirement income, and your future.
Get your superannuation questions answered by the experts. Send any query big or small to firstname.lastname@example.org
Kelvin Gough is the manager of Safe Super Homes
Gary Kosover is a chartered accountant at Safe Super Homes
This article contains general advice only. Before acting on it consult qualified professionals.