When you are planning for your retirement, one of the most important things you need to organize is your Superannuation. Keeping a close eye on how your investments and your Super are performing. Calculate how much you will need to retire comfortably and work out if your superannuation and investments will provide adequate funds. Are your investments getting the ideal return to meet your requirements?
Research has shown that most people have a large gap between the total of their investments, savings and Super and the amount they need to comfortably retire. Many of these people have no idea how their Supers are performing. The ASFA (Association of Superannuation Funds of Australia) revealed that 26% of people surveyed have no idea what the balance of their super is.
If you are paying into a superannuation fund, you should review your annual statement in the early years. When you are planning for your retirement and as your fund matures you should keep a closer eye on it. To help you get a handle on your Superannuation, we have put together this example. It could prove useful in showing you that you should be monitoring how your Super is invested and how many fees you are paying on your fund.
How much superannuation will you need upon retirement?
The ASFA estimated that the average Australian couple who will receive at least a part age pension will need a super fund of $640,000 dollars and singles a fund of $545,000. It is assumed that people will withdraw this as a lump sum on retirement. These amounts will obviously vary depending on the standard of living you intend to maintain.
How much should I have in my Super Account now to live comfortably when I retire?
A survey by Canstar reveals that too many Australians will not have enough in their Super to be able to retire comfortably. They found that an average 30-year-old should have $61,000 in their accounts, on average they have less than 35,000. Data also revealed that women suffer the biggest shortfall, their super balance is nearly $300,000 short of an acceptable level at retirement.
Luckily most experts agree that this situation can be fixed easily if you start to make the necessary changes today. Getting the advice of a financial planners who are specialists in Super funds would certainly be a step in the right direction.
Are you getting the ideal return for you?
Experts do concede that the Superannuation Guarantee (SG) system is still evolving and too many people are still forced to make payments over and above the standard contributions. If they want to reach the ASFA minimums they will have to make some sacrifices today. Getting some advice on how to manage your Super, sooner rather than later is the best avenue of approach.
They also recommend that you keep a diverse portfolio of investments on top of your superannuation. If you do this your chance of retiring comfortably will greatly increase.
Our team of financial experts will be more than happy to provide you with answers to any questions you may have. Please do not hesitate to contact us.