Don’t wait until the latter part of your career to think about your retirement plans.
While your super is not going to be a priority in your thirties and fourties, having a plan for your retirement is just good financial sense. Here are our five simple steps for saving for your retirement.
1. Figure out how much cash you will need to be comfortable in old age.
To figure this out, work out your currently monthly spending, and estimate what of this expenditure will continue when you retire. Having a goal to work towards is always important with saving.
2. Set a savings plan
Now that you have a superannuation goal to work towards, develop a savings plan of how you will reach it. How much extra do you want to contribute to your super a month?
3. Find out how and where your super is invested
By understanding how your fund invests your super, and what choices you have available with your fund investments, you could maximise your savings. Don’t just leave it up to the experts. This is your money.
4. Find any lost super
If you have worked a few jobs over the course of your life, it is likely you have some lost superannuation out there. Before it all gets eaten up with fees and charges, with the Australian government service FIDO. You could be boosting your retirement by thousands of dollars.
5. Investigate other investment options such as salary-sacrifice
Options like salary-sacrifice can maximise your savings by increasing your contributions. Make extra contributions and take advantage of the government’s co-contribution scheme.