A new financial year is a good time to review your super

Superannuation may play a crucial role in securing financial stability during retirement. As a cornerstone of Australia's retirement system, understanding and managing your super effectively may be important for long-term financial well-being. In this article, we'll delve into the intricacies of superannuation, from fund selection to investment options, providing you with valuable insights to navigate this vital aspect of financial planning. And it doesn’t matter how old you are, you should understand what your fund has to offer and the sooner you find out, the better, noting that we’re just providing the information – any decisions you make are based on your own self education or in consultation with your financial adviser.

Getting to know your super fund

Understanding what your fund offers you is one of the most important fundamentals, when it comes to your retirement savings strategy. It’s a good idea to understand the  investment performance, fees, insurance offerings and member benefits that your fund offers. For your Resolution Life product, we provide an overview of our products here, or you can review your annual statement – 2023/24 annual statements will be distributed soon.

Consolidating multiple super accounts

Managing multiple super accounts and choosing to consolidate your multiple funds is a decision for you to make. Before merging accounts, it's crucial to assess if moving all of your super money to the one account is best for you. Additionally, you will need to consider the insurance entitlements associated with each fund and if consolidating funds means you will lose these benefits. Reach out to your financial adviser if you are unsure about what is best for your personal situation.

Contribution options – know your options

Contributing additional funds to your super may accelerate wealth accumulation and bolster your retirement savings. Voluntary contributions, such as salary sacrificing or after-tax personal contributions, offer tax advantages and may compound over time, potentially enhancing long-term growth opportunities. And while retirement might feel like a long way off, it’s never too early to start planning.  However, it's also important to strike a balance between super contributions and other financial priorities, considering factors like debt repayment and emergency savings.

Insurance review: protecting your future

Super funds typically provide insurance cover to members, including death, total and permanent disability (TPD), and income protection. If you’re unsure what options are available for your particular product, consider speaking to your financial adviser or contact us.

If you already have insurance as part of your super, regularly reviewing your insurance arrangements helps you to understand if you have adequate coverage, that you may want to tailor to your circumstances. Assessing factors like premiums, benefit levels and exclusions may help you to decide how you arrange your insurances.

Investment choices – you have options

Super funds generally offer a range of investment options, from conservative cash holdings to high-growth equities. Understanding your risk profile (the degree of uncertainty you are prepared to accept in relation to investment returns, in particular the extent to which you are prepared for a negative investment return, while trying to achieve positive investment returns) and investment objectives is important if you want to select your own selecting investment options. While default investment options provide simplicity and convenience, actively choosing your investments (if you’re comfortable to make these decisions either on your own or with your adviser) may deliver you with control you’re comfortable with for your portfolio's performance.

Seeking professional help

Navigating the complexities of superannuation can be daunting, especially for those unfamiliar with financial markets and regulatory frameworks. If this sounds like you, seeking advice from a qualified financial adviser can provide clarity and peace of mind. A financial adviser can assess your individual circumstances, goals and risk tolerance, tailoring recommendations to optimise your superannuation strategy.  

In conclusion, superannuation is a cornerstone of retirement planning, offering a pathway to financial security in later years. By understanding what your fund offers, consolidating your superannuation accounts (if this is the right approach for you), your contribution choices, insurance and investment options, you can make informed decisions to attempt to maximise your retirement savings. Whether you choose to manage your super independently or seek professional guidance, proactive engagement with your superannuation helps your long-term savings.