April 20, 2014
The biggest thing about Super in your 40s is that it is not too late to start BUT there’s no time like the present. If your Super has been off the priority list but reaching your 40s has shifted it into focus, check out these key tips to maximise your opportunities for growth before retirement.
Define your retirement goals
Get into the detail like at what age do you want to retire; what kind of lifestyle do you envisage for yourself; what will that lifestyle cost and what do you need to do each year to achieve it. The Association of Superannuation Funds Australia recently stated that a comfortable income for a couple would cost $56,000 a year. How does this match up to your expectations?
The key thing is to not become overwhelmed but rather break down what you need to do and achieve overtime to get there. But first, you have to know what you are playing for so map out your retirement based on what you want your biggest holiday ever to look like.
By the time we are in our 40s, debt is often a part of life – but that is not to say that it should be left to tick over, unattended. Again, get into the detail of what your debt is costing you and work out ways to pay if off faster.
Many debt products we have sitting around accumulate fees and interest sums that can be quite a surprise when getting into the numbers – which is all money that could otherwise go towards your retirement.
Bump up your contributions
A little less now can make a big contribution to your retirement. By speaking with your employer and arranging for a larger amount of your pay to be allocated to your Super, you will not only benefit from growing your nest egg quicker, but also from the tax benefits of Salary Sacrificing.
Super Health Check
How is your Super performing? Are you invested in funds that match your risk profile (comfort levels)? Taking control of your Super by educating yourself and regularly reviewing its performance is one of the most important things you can do: it may well identify opportunities to reduce fees, increase growth and it keeps your retirement goals top of mind.