For those who are lucky, retirement doesn’t weigh very heavily on the mind. These individuals have a decent amount saved up in preparation, as well as an investment portfolio to give them an extra cash injection to live the high life.
But for the rest of us, retirement can be a big concern: What kind of lifestyle do I want? Where will I live? Is my super enough to carry me through?
While having superannuation strategies in place to ensure a secure retirement is of the utmost importance, here are a few key facts about super to make you feel better about your retirement prospects.
1. Australian super is world-renowned
The Australian superannuation system is one of the best in the world. But don’t just take our word for it – in 2014, Australia was ranked by the Mercer Global Pension Index as having the second best retirement income system in the world, edging out the Netherlands for the first time in five years and coming just behind Denmark.
Australia had long been sitting at third on the index, but the first increase to super guarantee payments in 11 years – from 9 per cent to 9.5 per cent – pushed it up. So did plans to increase it to 12 per cent in the future. As a result, Australia achieved the highest adequacy score in the world.
2. Super assets have reached a record high
Newly released statistics have revealed just how much Australians have saved up in their super funds. According to the Association of Superannuation Funds of Australia, super assets reached a new record total value of $1.94 trillion by the end of the December 2014 quarter. Averaged out among the 14 million Australians with a super account, that comes to around $138,571 per person.
More importantly, this sum is set to grow further. Treasury forecasts from 2008 have predicted the value of super assets will grow to a mind-blowing $8.65 trillion by 2040.
3. There are lots of super strategies available
If you’re still concerned about how your super will fare during retirement, remember that you have plenty of options for what to do about it. For instance, you can make additional contributions to your fund, through salary sacrificing, for instance, or by making after-tax contributions from your personal accounts.
Alternatively, you could switch up your asset allocation – most super providers offer a number of different investment options for those after balanced growth, large short-term returns or anything in between. You could even open a new account with a different provider – this could save you thousands on fees in the long run, or set you up with a better performing account.
The world is your oyster when it comes to Australian super. Just be sure to speak with a qualified financial adviser in the Whitsunday Shire before you make any decisions.
