Make sorting your super a new year’s resolution for 2022
We’ve all got new year’s resolutions we’ve set for 2022. Maybe you’re looking to get physically fitter. Maybe you’re thinking about doing more community work. Maybe you’re planning to explore a new hobby.
When you think about what you want to do in the new year, you might also want to think about your financial goals alongside your new running regime. Don’t forget to look over your super; it could have a major impact on how much you have when you retire.
Whether you’re still some time away from retiring or you’re nearing retirement, there are simple steps you can take in 2022 to help achieve your desired retirement lifestyle.
Consolidate your super into a single account
A lot of us have accumulated multiple super accounts as we’ve moved from job to job. Consolidating your super* into a single account is one of the most important steps you can take to make the most of your retirement savings.
Consolidating your super is an easy and effective way to reduce unnecessary fees and possibly insurance premiums, meaning you could have more money in retirement. Having all your super in one account also makes it easier to keep track of and manage your retirement savings, especially after super stapling’s introduction.
Make extra contributions
Most of your super will come from employer contributions but making even small extra contributions over time can make a big difference to your retirement savings. The power of compounding interest means any contributions you make early in your working life will have a greater impact.
You could consider these two simple ways of making extra contributions:
- Salary sacrifice – This is an agreement with your employer to pay some pre-tax salary into your super
- Voluntary contributions – These are payments made after tax as a one-off or regular payment. If you’re a freelancer or self-employed, it’s likely you’re responsible for making your own super contributions, and these will be classified as voluntary contributions.
If you make extra contributions, you may be eligible for a government co-contribution, depending on your income, and they’re fully tax deductible.
Use our Contribution Calculator to explore your options and see for yourself the difference extra contributions can make over time.
Our Helpline team can help you work out a customised contribution strategy that will maximise your contributions to help your super balance grow faster. Call us on 1800 640 886.
Check your details are correct
You should take a moment to ensure your details are correct, complete with your name, contact phone number, email and current mailing address. You can check these by logging into your account or on previous correspondence you’ve received from the fund, such as your most recent annual member statement. If your details don’t look right, you can log into your online account at any time to update them.
Keeping your details up to date is the easiest way to make sure you’re aware of important fund updates, including our merger with Cbus, and that none of your valuable super becomes lost.
Track down any lost super
Super often becomes lost when someone changes their name, address, joins a new fund or simply switches jobs. Lost super can be hard to avoid if you’ve worked several casual, freelance and part-time jobs or moved around a lot. Treasury estimated that in 2021, there was around $13.8 billion in lost or inactive super accounts in Australia.
If your fund doesn’t have your current address and has been unable to contact you, and you’ve had no contributions or rollovers into your account in the last 12 months, your super must be treated as lost, and will then be reported to the Australian Taxation Office (ATO) so you can claim it.
If you think you might have lost super, you can find out how to find it by heading to the Consolidating your super page.
Consider your investment options
If you haven’t made an investment choice, your money will most likely be in Media Super’s Balanced (MySuper) option.
Everyone has different investment needs based on your life stage, financial situation and how ‘hands on’ you want to be, so there may be a better option for you. Read through your available investment options and make the right choice for you.
Generally, when you’re younger, you may want to invest in growth options as you have a longer investment timeframe and usually can afford to take more risk. As you get older, you may gradually move to more conservative investments aimed at reducing volatility and preserving your balance.
We have a wide range of investment options from pre-mixed options to single-asset options and a direct investment option.
Choose the right insurance cover for you
Most Media Super members receive a default level of insurance cover on their account for:
- Death and Total and Permanent Disablement
- Income Protection
The amount you receive depends on your membership type and age, or any changes you make.
Members with less than $6,000 in their account or under 25 no longer receive automatic insurance when they first join. If you fall into either of these categories, you may wish to consider insurance cover depending on your situation.
Insurance through Media Super is an easy and cost-effective way to protect you and your family. Group buying power means it can be cheaper than purchasing cover outside super. See your available insurance options at the Choosing an insurance option page.
Premiums are deducted from your super, and while insurance is an important part of your financial wellbeing, premiums can eat away at your savings over time. You should check your account to see if your level of cover is right for you. Insurance is flexible and you can change your cover at any time.
If you have questions about your insurance cover, our team can help. Call the Helpline on 1800 640 886 to get started. You can also read our guide on how to choose the right level of insurance cover through your super.
Stay on top of merger updates
We’re keeping our members informed of the latest developments in our proposed merger with Cbus. Be sure to read any correspondence you receive from the fund via email or post, check the blog or follow us on social media via Facebook, Twitter, Instagram and LinkedIn.
We’re here to help
We’re committed to providing you with the right resources that help you achieve your retirement goals. You can find a range of useful tips and tools at the Super resources page.
If you have questions about your insurance and investment options or making contributions, or need account or transaction support, call the Helpline on 1800 640 886 between 8.00am and 7.00pm AEDT/AEST on weekdays.
*Before making a decision to combine your superannuation, you should consider any costs, change to insurance cover or loss of benefits that may apply and, if necessary, consult a qualified financial adviser.