Whilst you don’t care
about retirement now (we get it, why would you if you’re young?), we can almost
guarantee you that one day you probably will. This may happen when you start a
family or just when you get older (which also we can pretty much guarantee). So,
don’t forget that your Superannuation is still
your money, just like it is your money in a bank account or your Raiz
account. You have spent time learning
to be more financially confident, so it is just as important to understand
Superannuation and how to get the most out of it.
How is your Superannuation funded?
Your employer will pay contributions
to your super fund on your behalf. It’s required that your employer pays at
least 9.5% of your salary at all times. However, it may be a great idea to
explore boosting your super balance even further and letting the power of
compound interest do its magic if you can afford it. Like the Raiz Philosophy
of investing small amounts regularly, what might be insignificant amounts now,
will add-up over your working life and could mean a big difference to your
lifestyle upon retirement.
Last year, the government
announced you can also voluntary contribute on top of the employee guarantee
payment further, cash taking the total up to $25,000 per annum and that this contribution
will be before tax (check with your advisor or superannuation fund on how this
is done). This extra ability to do voluntary contribution rolls forward for 3
years. This means if you didn’t voluntarily contribute this year, your cap
rises to $50,0000 the following financial year ($25,000 from first year, and
$25,000 from the second year).
What’s the first step to getting your Super under control? –
Every year, billions of
dollars are lost in fees paid to manage and administer your super, mainly due
to a lack of consolidating your super. This is because many superannuation
funds charge a flat fee for administration. If you’ve had a lot of jobs
(casual, part time or full time), you may have all your money sitting in
separate funds or lost supers and having to pay flat fees on each fund. Consolidating all
these into one super fund could help you save on fees and help you feel more
financially confident by managing this money all in one place. Tools such as
Raiz Super, once fully launched, can help you search for all your Supers
through your TFN and can consolidate them on your behalf.
Did you know?
- Australia was one of the few countries to avoid a major recession during the GFC, with some economists believing that Australia’s superannuation system is what helped prevent it.
- Australian superannuation is the fourth largest asset pool in the world and totaled approximately $2.6 trillion in 2017.
- All Superannuation products in Australia, including Raiz Super, are governed by five separate regulatory bodies including Superannuation Complaints Tribunal, Australian Taxation Office, Australian Securities and Investments Commission, Australian Prudential Regulation Authority and the Department of Human Services
Why is Super important?
Today, the average person changes jobs ten to fifteen times during his
or her career. Future generations are predicted to have this increased to 17
employer changes across five different careers. This means it will be more
important than ever to know where your superannuation contributions are going,
and how you can make the most out of it for your retirement by reducing the
fees you pay now. We know you probably
don’t care about retirement now, but you will one day. For this reason, like
your bank or Raiz account, your superannuation fund should never be out of
sight, or out of mind. It is your money and your funds for living a comfortable
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The information on this website is general advice only. This means it does not take into account any person’s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the product.
A Product Disclosure Statement for Raiz Invest and/or Raiz Invest Super are available on the Raiz Invest website and App. A person must read and consider the Product Disclosure Statement in deciding whether, or not, to acquire and continue to hold interests in the product. The risks of investing in this product are fully set out in the Product Disclosure Statement and include the risks that would ordinarily apply to investing.
The information may be based on assumptions or market conditions which change without notice. This could impact the accuracy of the information.
Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz Invest or Raiz Invest Super.
Past return performance of the Raiz products should not be relied on for making a decision to invest in a Raiz product and is not a good predictor of future performance.