Super is one of those things we take on as we slip into adulthood – often without really understanding what it should (and could) do for us.
To help understand how it all works, we chatted with our good friends at Zuper and have identified the 5 key areas that could help with building your retirement funds.
1. Choose where your money is invested
When you start with a new super fund, generally there’ll be a default investment program you’re placed into. But did you know you can have a lot more control over where your money goes? With impact super funds like Zuper*, they make it easy for you to invest your money into industries that align with your values. They’re focused on the future of the planet, with options to invest in green, technology or health.
Pro tip: you can nominate your own super fund for any job. If you have multiple funds, you should think about consolidating them into just one to help save money on fees in the long run.
2. Gain access to great additional perks
As the managers of your retirement money, it’s in your fund’s interest to make sure your super is growing and benefits you in the long term. Funds will sometimes offer career-related member benefits to also help add value to your work related goals in the short term. At Zuper, you have access to Career Boosts – which are discounted training and opportunities, focused on building your personal and professional development.
3. Self-employed and super(annuation) savvy
If you’re a sole trader or running a small business, you’re responsible for planning for your retirement which may include putting part of your income into a super fund. As a guide, the minimum amount an employer must contribute towards an employee’s super is 9.5% p.a. on top of a wage, which is something to consider when deciding how much you'll contribute to your own super.
Pro tip: as a sole trader you have 2 options. You can either set up a regular transfer into your super fund from your before-tax income, or periodically transfer a lump sum when you have enough cashflow. Visit MoneySmart for more information and speak to your financial advisor.
4. The savings fund you often forget
Superannuation can be a really effective way to save money in a couple of ways.
Your employer has a minimum amount of super they have to pay you, but you can make your own contributions on top of that. You could check whether you’re able to salary sacrifice some of your income into your super, meaning you contribute a percentage of your before-tax income to boost your super in the long-run. See the ATO website and speak to your financial advisor about your situation.
Another option is to make personal super contributions from your bank account which could be deductible come tax time. This could mean a healthier tax return you can put straight into a higher interest savings account (like our USaver Ultra** savings account!).
5. Take the reins, and manage your own super fund
You also have the option to run your own Self Managed Super Fund rather than contributing to an industry or retail fund. We offer 2 options for SMSF’s, including high-interest savings and Term Deposits. If ethical investing is up your alley, then you might consider our SMSF Green Term Deposit***, where your savings are matched to a portfolio of renewable energy projects like wind and solar energy and low carbon buildings.
Getting off on the right foot not only gives you more control over your future, it also gives you the choice to make a greater impact on your global community.
*Before making a decision in relation to your super you should read the Zuper Super PDS, speak to a licensed financial professional and consider if the information is appropriate to you. Zuper Super is issued by Diversa Trustees Limited (ABN 49 006 421 638), (AFSL No 235153), as trustee of LESF Super (ABN 13 704 288 646).
** You should consider the USaver terms & conditions before making a decision about this product.
*** You should consider the UBank Term Deposit terms & conditions before making a decision about this product.