In your twenties, it’s easy to get caught up living in the ‘here’ and ‘now’. But, it’s never too early to spare a thought for your future and the lifestyle you hope to have when you retire!
While this may seem like a long way off, putting hard work into your superannuation now can give you peace of mind and ensure you feel comfortable and confident retiring after living life to the fullest.
Recently at BOQ headquarters, three of our own twenty-somethings have been sorting out their supers. To help you get on top of your super, here’s what they learnt, and what you need to know:
“Consolidate all your super funds into one”
From hospitality to admin and everywhere in between, it’s not uncommon for millennials to work in a wide range of jobs before turning 30, and with that, you’ll have likely received a new super fund for each new role you took on. By the end of your twenties, you may have multiple supers to try and manage and make sense of!
Having these in separate places and not really knowing how much you have in each fund can make organising your finances difficult and leave you with a lot of unnecessary (and complicated) paperwork.
Bringing all of these accounts together helped me simplify my super so I knew exactly what I had and where it was. Better yet, by consolidating, I stopped paying multiple fees and charges on numerous accounts, which helped with my savings!
“Understand the First Home Super Saver Scheme”
While you may not be in a position to buy your first home just yet, chances are it’s on your radar. But in a market where average house prices seem so far out of reach, turning the Australian Dream into a reality can seem like the stuff of nightmares.
Thankfully, I discovered that there’s a scheme in place that lets first home buyers use their super to get a deposit together for when they’re ready to jump on the property market!
The First Home Super Saver Scheme was introduced in the 2017-18 Budget by the Federal Government. It gives first home buyers the chance to pay voluntary super contributions and then withdraw those when it comes time to purchase a property. First home buyers can pay/withdraw up to $15,000 in super contributions per year, and up to $30,000 in total.
The scheme is great for millennials getting ready to enter the property market as you won’t be tempted to dip into your savings!
Choose your investment strategy wisely
Once you’re on top of your super and it’s in one place, it’s time to work out how you can really make your super work best for you. If you didn’t already know, there are a variety of investment options you can choose from and play around with to try and get the best return possible. Two of the most popular options include stocks (which are typically higher risk) and cash/bonds, which is a low risk option.
In your twenties, you have a long investment time on the horizon, so you have room to try different options. A high-growth option can give you a great head start in creating a comfortable future!
It’s important to assess your investment strategy regularly to see how it compares against other funds and whether you feel satisfied with your returns.
If you’re after a little more advice on your own superannuation, the rest of the BOQ team has you covered. Pop into your local BOQ branch to chat with a specialist or give us a call today!