Sort your super this new financial year
The beginning of the new financial year means you’ll likely set aside some time to organise your tax return and review your financial situation. Don’t forget to look over your super too; it could have a major impact on how much you have when you retire.
There are simple steps you can take that will help you make the most of your super so you can achieve your desired retirement lifestyle.
Consolidate and save
A lot of us have multiple super accounts we've picked up as we changed jobs. Consolidating your super is one of the most important steps you can take to make the most of your retirement income.
The sooner you consolidate your super into one account, the sooner you’ll stop paying unnecessary fees and have more to put towards your ideal retirement lifestyle.
By keeping all your super in one fund, you can maximise your compound returns because you’ll only be paying one set of fees and insurance premiums, meaning more of your money is invested and earning returns.
Remember to check your insurance cover or loss of benefits before closing accounts.
Make personal contributions – every dollar counts
The bulk of your super will come from employer contributions but making even small personal contributions over time can make a big difference to your retirement savings.
Keep in mind that if you’re a freelancer or self-employed, you’re generally responsible for making your own super contributions.
Two easy ways to make contributions are:
- Salary sacrifice – an agreement with your employer to pay some pre-tax salary into your super
- Voluntary contributions – payments made after tax as a regular or one-off payment
If you make personal contributions you may be eligible for a government co-contribution, depending on your income. Your personal contributions are fully tax deductible.
Making contributions at any stage will help boost your balance; but because of compounding interest, contributions you make early in your working life will have a greater impact.
Based on a 30-year-old with an annual income of $50,000 before tax, with a starting balance of $25,000, making additional contributions via salary sacrifice, retiring at age 67. (Industry SuperFunds ‘Add extra to your super’ calculator, https://www.calc.help/industrysuper/add-extra-to-your-super).
Use our Contribution Calculator to explore your options and see for yourself the difference personal 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.
Search for any lost super
According to Treasury, there’s approximately $13.8 billion in lost or inactive super accounts in Australia.
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.
If your super 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 ATO so you can claim it.
If you think you might have lost super, find out how you can find it by heading to the Consolidating your super page.
Know 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.
Media Super has a wide range of investment options from pre-mixed options to single-asset options and a direct investment option.
Protect yourself with the right insurance cover
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 to get started.
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 AEST/AEDT on weekdays.