Economic reports from around the globe are forecasting volatile times ahead and the most at risk in times of economic uncertainty? Seniors and those entering retirement. But understanding your super fund and keeping an eye on the future can help safeguard your nest egg, no matter what stage of life you are in, writes Rachel Davis.
Once the preserve of finance professionals, stocks and shares are now common place discussions around the dinner table. The superannuation guarantee in Australia, soon to rise to 12%, has given our citizens an enviable nest egg but with most of it invested in the share market through super funds, it is open to the dramatic highs and lows of the markets.
A couple looking to achieve a comfortable retirement will need to spend $55,316 a year, while those seeking a ‘modest’ retirement lifestyle need to spend $31,767 a year, according to new figures released by the Association of Super Funds Australia.
To achieve this kind of income in retirement requires careful planning, some luck but also knowledge. Do you know where your super is? It sounds simple but the average Australian has multiple super funds, each charging fees and taking money straight out of their retirement income. Most super funds now offer free services – if you switch to them – that will track your lost super and then roll it over into one account.
Protecting your retirement income begins with your super fund. They are more accessible than ever before with many offering free advice and calculators on their websites. Question them and make sure you understand what kind of fund you are in and how much they are charging you.
If you are with one of the top three super funds, it is unlikely that you are getting the best deal so, do what you would in any other situation – shop around for the best deal. There are a number of independent super ratings houses that track the funds over three, five and 10 year periods.
Go ahead, I dare you to compare.
www.50up.com.au
