Superannuation in your 30s and 40s
About the author:
- Author name:
- By Nicole Angelucci
- Job title:
- Date posted:
- 06 August 2018, 3:24 PM
For people in their 30's and 40's, it can be a busy time working to pay mortgages, support growing families and trying to squeeze in a holiday here and there. There's not much time to think about superannuation, but what most people don't realise is that superannuation can be one of their largest financial assets.
Working in the financial services industry, I get to have a sort of "hindsight" when it comes to seeing the impact that small decisions made early can make, and the impact when you finally retire can be significant. Being able to pull up stumps and retire on your terms is a gift that the 'future you' will be thanking the 'present you' for.
There are some serious advantages to getting to know your superannuation now. You don't need to understand all the nitty gritty of superannuation legislation or contribution caps. Just a few small things can make a big difference to your financial position later in life.
Ask yourself these questions:
How much do I know about my super?
Do you have more than one super fund? Paying fees on more than one super fund can have a significant impact on your potential savings.
How are my funds invested?
What sectors are you exposed to? Is your asset allocation appropriate for your stage of life? Are you just in a default fund, and what does that even mean?
How much am I paying in fees?
Are you paying for features you don't need? Something as small as reducing fees for unnecessary features can compound and add tens of thousands of dollars to your balance.
Otherwise, adding just $10 per week to your superannuation can greatly bolster your final balance.
Assuming you have a current super balance of $100,000 invested in a Balanced Fund, the comparative balance in 30 years time is as follows:
As you can see, making some small changes now could mean the difference between having the power to stop working when you choose, or having to continue working until you can finally afford to stop.
More information
If you would like some advice or assistance with anything discussed in this article, please don't hesitate to get in touch with me on (07) 5449 9511 or by email at [email protected]
Disclaimer: This blog represents my opinion only and is not a formal opinion of Morgans Financial Limited ABN 49 010 669 726 AFSL 235410.
The blog does not constitute advice in any form and the information is general in nature. No consideration has been given to your personal needs, objectives or circumstances. If you would like more information or advice, please contact Nicole.
Nicole Angelucci is an Authorised Representative of Morgans Financial Limited, Authorised Representative number: 001255163.