Is it time for a super health check?
The much debated topic of superannuation is soon to hit the media again as the next increase in the mandatory employer payments to 10% comes into effect at the start of the 2021/22 financial year.
Not too engaged with your super? Ask yourself these questions:
· Which fund is my super with?
· How much is in my super account?
· Is my employer paying contributions?
· How are my funds invested?
· Do I have insurance attached to my super – is it appropriate for me?
If you were unable to answer any one of these questions confidently, it might be time to give a professional a call.
According to AMP, the average super balances at different life stages are:
Age Female Male
30 $24,000 $28,000
40 $72,000 $92,000
50 $127,000 $182,000
As you can see, it doesn’t take too much to be better than average, and the good news is that it is never too late to start building the path towards a comfortable retirement.
Did you know that $1,000 invested for 30 years at a 5% net return compounding twice a year will be worth around $4,400 in 30 years’ time? If you add a contribution to your initial investment of $100 at the end of each month, taking the same net return and compounding period, you will have roughly $87,000 including about $50,000 in gains.
The power of compounding will continue to work harder as your super balance grows, so being able to find a little bit extra to contribute earlier in life can have a huge effect on your overall balance when you retire.
Call the experts at Hunter FP now for a super health check or to model how your super balance might look at retirement.