3 ways to be Super Smart about your retirement – even though it’s a while off
The super fund you choose today makes a big difference to the savings you have in retirement. We show you how to be Super Smart.
Sponsored by Spirit Super. With a blend of low fees, personal support and a history of strong long-term returns, Spirit Super can help you get set up for super success.
Your mid-20s to your mid-30s are some of your prime years for building your superannuation balance.
So it's important to find ways to use those years wisely. You want to generate future wealth and plan effectively for your retirement.
Today, we're going to take a look at some Super Smart Tips – and some Super Signs – for taking a look at your super fund.
Super Smart Tip 1: Switching funds can be beneficial to your long-term super balance.
People tend to think of super funds as being pretty hands-off, unless you've opted for a self-managed super fund.
But this doesn't mean sticking with the same super fund for your whole working life is the best approach.
Every year or so, it's worth looking at what sort of returns you're receiving and how they stack up against the rest of the market.
Using tools like Finder's superannuation calculator can give you a clearer picture of how much super you're likely to retire with. By inputting the appropriate figures, you can get a feel for projected returns across a range of different super funds.
Super Sign 1: Look for a fund that offers an effective range of services and features
Of course, making a switch needs to be considered holistically.
Low fees often become a key focus. Understandably so, too – you don't want to have excess fees eating into your retirement!
But it's more nuanced than that.
Returns, fees, fund services and features all need to be weighed up before switching funds. Preferably, you want a super fund that strikes a balance across all of them.
Let's look at Spirit Super as an example.
Spirit Super is considered a low-fee fund with a history of strong returns. It also offers a range of services and features to customers.
These include insurance, an integrated healthcare program and access to professional financial advisers for no additional cost (more on that in a moment).
Everyone's super needs are different, but looking for balance can help you make a better decision for your retirement.
Super Smart Tip 2: Get advice about your super before you make big decisions.
When it comes to decisions about your super, some are pretty straightforward but others can be more complex.
Decisions like changing funds, deciding on the right contribution type/level or rearranging your investments can be a bit more involved.
This is when it's handy to have access to a financial professional to help you make decisions that are attuned to your own circumstances.
Super Sign 2: Look for a super fund that allows you to connect with an advisor.
A number of super funds – such as Spirit Super – provide members with access to professional Super Advisers.
Spirit Super offers this service to members for no additional cost.
This allows you to access personalised, one-on-one advice about your super.
These decisions can cover a range of factors.
Some might include shifting your investment style, discussing your insurance or deciding on a contribution strategy that's better suited to your goals.
So when you're considering super funds, it's worth looking for one that provides access to professional advice.
With access to experts, you'll be able to make more informed decisions about your super over the course of its lifespan.
Working in consultation with professional Super Advisers can help you get a clearer picture of your retirement goals, too. And that leads us to our next Super Smart Tip…
Super Smart Tip 3: Find a fund that caters to your retirement goals
Everyone has different retirement goals. But no matter what yours are, your ability to carry them out is largely going to be determined by your superannuation savings.
So it's important you're working with a super fund that can help you meet these goals.
While there are proactive steps you can take – such as making additional contributions – you need to have a solid platform to work with in the first place.
To a large extent, this is influenced by the investment options that your super fund offers.
Super Sign 3: Look for a fund with a range of different investment options
When you opt for a super fund, make sure you choose one that offers a range of risk profiles and investment options.
Super fund investments can broadly be divided into two types of risk.
- Growth – Geared at rapid, short-term growth in assets, but at the expense of higher risk. Can see greater returns overall, but it's not guaranteed.
- Balanced – Geared at long-term stability with lower risk. Unlikely to see the same highs as growth funds, but also unlikely to be exposed to the same levels of fluctuations.
Super funds generally allow you to select across a range of portfolios, with pre-selected asset categories and single asset classes.
You should also look for a fund that offers the types of investment you'd like your super to be placed in.
For example, Spirit Super allows you to select a sustainable option. It's a portfolio primarily focused on growth, with weighting given to assets that factor in environmental, social and governance risks.
Last – but not least – when selecting a super fund, you should also look at the long-term returns that fund has achieved.
While historic performance doesn't guarantee future performance, it can still provide insights into a fund's strategic plans as well as response to changes in economic and financial conditions.
Discover more about Spirit Super today
Sponsored by Spirit Super. With a blend of low fees, personal support and a range of services, Spirit Super can help you get set up for super success.