Superannuation tips for young Australians
Published 05 Jul 2019
Author: Jesicca Yousif
For many young Australians, superannuation is a bit of an afterthought. Retirement seems like a lifetime away and with decades of employer contributions ahead, it’s no wonder many tend to keep their superannuation fund on the back burner. In reality, it’s never too early to start planning for retirement. Here, we give our top tips for those looking to get the most from their superannuation fund.
1. Research your superannuation fund
When people start working, employer contributions usually default into a super fund without the employee fully understanding where the investment is going. As super funds are generally supposed to stay with you for long periods of time, it’s vital to research whether the fund is going to benefit you in the long term. Consider how much you’re paying in fees, how it performs and the administrative assistance you’ll receive.
2. Weigh up insurance
Many superannuation funds have life insurance policies attached to them automatically. From July 1, everyone with life insurance as part of their super will find themselves opted out of their policy, a change made to bring down fees and excess costs for the funds of younger Australians who don’t necessarily need life insurance.
However, this isn’t good news for everyone. Those in jobs with a regular level of risk or danger, such as builders or electricians, may benefit from having an active life insurance policy to cover expenses if they are injured. It’s a great idea to discuss whether life insurance is necessary for you at your age with an experienced financial advisor.
3. Check on your employer contributions
If you earn more than AU $450 a month and are over 18, your employer needs to make contributions to your superannuation fund. The minimum that they need to pay is 9.5 per cent of your ordinary time earnings. Unfortunately, some employers try to avoid their obligation to contribute. Regularly checking your super balance means you can monitor whether your employer is adding to your super as they should be. If you find that your employer has neglected to pay your super, it’s vital to reach out to legal professionals to support your case.
Here’s where Gerard Malouf & Partners Superannuation Lawyers step in. With an expert understanding of laws around super, as well as the tricks employers use to avoid contributions, our team is dedicated to helping our clients achieve a favourable outcome for their superannuation claims. For more information, get in touch with one of our offices.