Considering consolidating your super?
It is well known that the superannuation system is the cornerstone of any retirement or long-term financial success plan due to its very generous tax concessional both in the accumulation and retirement phase.
Although many see superannuation as complex and restrictive, our advisors educate clients about the real benefits of using superannuation as part of your overall financial strategy. There are several approaches to building your superannuation balances, but we recommend that the first step on your way to financial freedom is to consolidate your accounts.
Most of us have more than one super account with multiple accounts occurring when we change jobs and join our new employers’ default super fund or have an old account from a long-forgotten job. Whatever the case may be, the fact is these accounts may be eroding your superannuation savings and could be put to much better use.
Imagine how much more money you could be making if you consolidated your accounts into one fund in one place. Make note that caution needs to be taken when consolidating or altering your accounts and seeking professional advice is paramount prior to this.
Choosing the right fund
Since 2005 most Australians have had the right to choose the fund that their employers pay their retirement savings into. There’s no shortage of options including:
- Industry super funds
- Large and small corporate super plans
- Tailored retail plans
- Self-managed super funds (SMSF)
Picking the right super fund for you is about your needs at your stage of life and may not necessarily be the fund your employer chooses as a default. Your BHPW adviser will sit down with you and help you chose a fund that’s a mix of investments and features that will get you to your retirement goals faster.
Comparing fees and costs
All super funds have fees and costs associated with them. What’s important is that we don’t pay for features that we don’t need or aren’t using. Often the life stage you’re at will determine the type of fund you select. For example, the needs of a 25-year-old with a low super balance beginning their career may be very different from a 62-year-old with a much larger balance nearing retirement.
Your adviser can assess your requirements and help you chose the right fund for your life stage and retirement strategy.
The average Australian has over three superannuation accounts. Often these additional accounts are sitting dormant with low balances being depleted by fees and insurance premiums.
Once again, make note that caution needs to be taken when consolidating or altering your accounts and seeking professional advice is paramount prior to this. Your adviser can assist you in not only tracking down your lost super but in selecting a fund to consolidate your accounts into.
How much do I need in super to retire? This number is different for everyone. Things like the amount of income you would like each year if you’re single or in a relationship, whether you own your own home will all factor into account balance you should be targeting.
BHPW works with clients to determine what their goals are and helps you put in a place strategy for reaching this target. Your levels of contributions, number of years to retirement, the fees you pay and your level of investment risk are all levers that can be pulled at the various stages of your working life to get you to the comfortable retirement you deserve.
Are you looking for a genuine partner to help you drive the next stage on your financial success journey?
We would be delighted to discuss your requirements and objectives in person or over the phone to get to know your goals better. Please feel free to contact us or book an appointment to set up a no-obligation meeting with one of our financial advisors.