For many Australians, their super will be one of the largest assets they have when they retire, next to the family home.
That’s why making choices around your super now can make a big difference later on.
In this short video, Mukul from AMP discusses how super can help you save for retirement, what factors can impact your super balance, whether you should make a choice about where your super goes and how you can go about comparing funds.
Mukul also shares helpful facts including tax advantages of making additional super contributions which might mean you could end up with more super than if you put your savings elsewhere.
We’re here to help
For further assistance:
- Learn more about the basics of super, the different types of super contributions and how consolidating your super could minimise the fees you pay
- Try our super simulator, to see if you’re on track to achieving your retirement savings goals
- See how additional contributions can grow your balance with our salary sacrifice calculator
- We also have a tool to help you find the right financial adviser for you.
About this video
In this video Mulkul from AMP answers some of the questions you may have around super, which for many Australians will be one of the largest assets they have when it comes time to retire.
To make super attractive, contributions are usually taxed at a lower rate than your income. This means you could end up with more money than if you had put your retirement savings elsewhere.
Just remember, you can’t access your super until you reach preservation age and there are limits on any additional contributions you make to super.
There are a number of factors that determine how much you have in super when you retire, such as how much money is contributed, how long money has been invested, the investment returns received and the fees you pay.
Similar to a bank account, the earlier you start putting money in, the more your balance should grow.
AMP has an online super simulator which can help you understand whether you’re on track to reaching your retirement savings goals.
As for whether you should make a choice about where your super goes, you will have options.
When you join a new employer you can accept the default super fund they offer, or choose for your super to get paid into your existing fund, which you can stay with throughout your career.
There are few exceptions and everybody is different.
As for how can you compare different funds, most people look at fees and costs, and how the fund is performing in terms of investment returns – however, past performance is not always a reliable indicator of future performance.
Other things worth considering are features and benefits, and whether the fund offers insurance.
Before making a decision, consider your circumstances or whether a financial adviser can help.
We look at the average super balances for different age groups in Australia so you can see how your super savings compare.