How to supercharge your super journey
The journey to retirement can see us navigating uncharted waters. We share five tips to help make your retirement transition a breeze.
For much of our working life we may look forward to the day we retire and leave the 9-5 grind behind. But as retirement approaches, we don't always feel ready to take control of our retirement journey. Engaging with your super fund early - and often - can make a valuable difference.
From selecting investment options to making extra contributions, being proactive with your super today can lead to a more secure and enjoyable retirement tomorrow.
Here are five strategies to consider:
1. Get ahead of the game
Don't wait until retirement is knocking at your door to take action.
Actively engaging with your super sooner rather than later could mean better decision-making and more peace of mind.
Consider the most effective way you can make additional contributions to super.
For some, this might mean salary sacrificing to reduce taxable income.
For others, making an after-tax contribution could see the government chip in with a co-contribution.
Importantly, starting early often means you can add smaller amounts to your super each year and let the compounding effect of long term investing do the heavy lifting to help grow your retirement savings. It's like a snowball effect that has the potential to grow your super over time.
2. Review and revamp your super
Our lives evolve, so it is important to review your super regularly to ensure it aligns with both your current circumstances and future goals. That said, maximising your retirement savings starts with knowing where you stand.
Understand how your super is invested, how it's growing, and the fees involved.
Many funds, including Hostplus, offer a range of products and investment options designed to suit every life stage and risk appetite. Diversifying your investments can help spread the risks, particularly when investing over the long term.
What matters is that you make choices that fit your financial goals and risk tolerance.
3. Plan your spending
How much super is enough? The answer to this commonly asked question depends entirely on your own lifestyle and spending habits.
It's not just about what you'll spend, but how you intend to live in retirement.
Assess your current expenses and consider how they might change in retirement. It's important to also think beyond your regular income needs, and consider whether lump sums are needed for big expenses, such as travel or home renovations, both at the start and throughout retirement.
Online tools available on the Moneysmart website as well as the Hostplus Retirement Projection Calculator can help you build a clearer picture of retirement spending.
4. Explore income options
Retirement is a time to balance income needs with ongoing living costs. It's also typically a period when people look to access their super in whole or in part. Knowing when and how you can access your super can help make the transition to retirement easier.
The age pension still serves as a foundation of income for many retirees. But other income sources, such as investments or casual work, can supplement the regular income generated by your super.
5. Seek professional advice
We all have our own hopes and dreams for retirement. It makes retirement planning very personal, and professional financial advice may be the key to tailoring a plan that suits your unique needs.
Your super fund may be a good place to start, with many funds offering a range of education and advice services to support members' needs.
Hostplus, for example, offers education webinars and personalised advice to guide members in their journey towards, and through, retirement.
Alternatively, you may prefer to work with an independent financial adviser you trust.
Start now for a better tomorrow
Creating a flexible, realistic financial plan today can make your retirement journey smoother.
The main point is not to wait. Retirement can roll around in the blink of an eye, and it's worth taking steps now to help secure a brighter future. Your future self will thank you for it.
Disclaimers: Issued by Host-Plus Pty Limited ABN 79 008 634 704, AFSL 244392 as trustee for the Hostplus Superannuation Fund (the Fund) ABN 68 657 495 890, MySuper No 68 657 495 890 198. This information is general advice only and does not take into account your personal objectives, financial situation, or needs. Consider if this information is appropriate for you and read the Hostplus Product Disclosure Statement (PDS) available at hostplus.com.au before making a decision. For a description of the target market, please read the Target Market Determination (TMD), available at hostplus.com.au.
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