A superannuation expert is urging Australian workers to take a greater interest in their super accounts as the cost of living continues to spiral upwards, and our life expectancy increases.
Naz Randeria has decades of experience in the auditing and self-managed superannuation space, and says while everyone should take greater accountability for their retirement plans, it’s even more important in the current economic environment.
“As interest rates and the cost of living continues to increase, saving for your future is crucial in order to be able to maintain your standard of living as you get older.”
“My concern is that younger workers aren’t thinking enough about investing or saving for retirement. But there’s still many years of living to be done once you’ve finished working, and I just wonder how many people have considered how they’re going to pay for that.”
Figures from the Australian Bureau of Statistics show life expectancy for men and women in Australia is around 81 and 85 years respectively.
Naz says the nature of Australia’s compulsory superannuation scheme – whereby employers are generally the main contributors – means there’s a disconnect between workers and the money in their super accounts.
“There is no ownership and accountability bred into a system when the general understanding is that superannuation is your employer’s obligation and is simply an employee’s legal right.”
“It’s your money sitting in that account, and you should care about where it is and what it’s doing.”
Naz says if people aren’t making extra contributions to their super accounts, there’s a potential for disengagement, as workers may feel it’s not ‘their’ money.
“If you make regular contributions to your fund, you start to become more aware about exactly how much money you have in your super account, and you tend to be more emotionally invested in making it work for you – whatever that looks like.”
Naz says there are some basic steps people can take to start becoming more engaged in their superannuation;
- Know What You Currently Have: Where are your employer superannuation contributions going? Do you have more than one super account? Do you have old accounts that need to be rolled over? They’re simple questions, but if you’re not sure what account you have or how you can access your statements, then you need to find out.
- Read Your Statements: Pay attention to the information being provided in your statements, and become familiar with the language used. Are you comfortable with how much you are paying in account fees and charges, and do you know what you are entitled to as part of your superannuation membership? Are you contributing towards a life insurance?
- Ask Questions: If you don’t understand something, ask. There are no stupid questions.
- Make Investments Other Than Money: Even if you can’t afford to make extra financial contributions to your super account, you can always invest your time in learning about your individual account/s and making sure you understand what the product is, and whether or not it’s right for you and your lifestyle.
- Consider Your Options: Is your current fund right for you, your lifestyle, and your retirement plans? While some workplaces may recommend you sign up with a specific fund, you don’t have to take the default option and can choose another fund, or may even consider a self-managed super fund, if it meets your needs.
- Consult an Expert: If it all feels too overwhelming, it’s best to ask an expert. Superannuation doesn’t have to be complicated, and having the basics explained to you is a great place to start.
Naz says the key is starting small and starting early.
“You are never too young to start thinking seriously about your superannuation account.”
“Simply being engaged in your super and making small changes while you are younger could make a huge difference by the time you are ready to retire.”
“My grandfather used to quote a saying to me that is apt for superannuation – money saved is money earned.’”
ENDS
About Reliance Auditing Services
Founded by Managing Director Naz Randeria over a decade ago, Reliance Auditing Services is a specialist independent auditing services firm, specialising in audit of self-managed superannuation funds and also providing external audit and assurance services to clients across Australia. The team offers more than 25 years’ experience across a diverse range of businesses and organisations.
Naz Randeria is available to interview.
Media Contact:
Lisa Barnes
Ph: 0416 583 672
Email: lisab@profilemedia.com.au