We have faster, better, freer access to information than any generation in history. While that has largely been put to good use, there’s one area where young Australians are falling short – not knowing enough about their super.
So, where to start I hear you say? We’ve put together three questions you should ask yourself to help get you started on the right path:
1) Do you know how much you’ll need to ensure a comfortable retirement?
What’s a journey without a goal? The Financial Services Council (FSC) notes that 70 per cent of Australians under the age of 34 have a super account, but only 8 per cent knew how much they needed to retire comfortably. By putting even a ballpark figure on your retirement, you can start building your super to accommodate your lifestyle.
Begin with a quick calculation of your expenses – how much you currently spend per year to live comfortably. Then multiply that figure by how many years you’d like to spend in retirement.
Once you have an idea of the amount you need, you can work out the best way to achieve it.
2) Do you know who your super provider is?
The FSC found that only one-third of millennials read their super statements. Whilst you shouldn’t be treating your super like a bank account, at the very least you should read your annual statement to have an idea about how one of your biggest investments will build over time.
If you don’t know where to start with finding your provider, talk to the Club Plus Super team. We manage superannuation for more than a thousand clubs across NSW.
3) Do you know where to get good advice?
We’re not going to pretend understanding long-term financial planning is a walk in the park. It’s complex, and in most cases retirement seems so far away that more pressing issues tend to take priority. But with a little forethought and an understanding of who can help you plan for the future, there’s a good chance you can set yourself up for a fantastic retirement.
Think of it like the butterfly effect – a tiny gust of financial proactivity today can make a massive difference in a few decades. To get started, call us on 1800 680 627 and we can arrange an obligation-free consultation with Club Plus Financial Planning.