Q: So, why does super matter so much?
When you’re starting to make your way in the
workforce, the lack of super may not seem like
a big deal. After all, retirement is a fair way off.
And you’ve got more money in your back
pocket for Friday night. And when you’re
younger, it’s easy to think of super as ‘lost
money’. You can’t access it now, so it’s out of
sight and out of mind.
But as you establish yourself in the workforce
and build up a bigger retirement nest egg, your
perception of super is likely to change.
If you’re contracting later in your career—for
example, after returning from parental leave—
or know someone who’s winding back their
hours leading up to retirement, like one of your
parents, you’ll know all about the importance of
super.
Super can be the difference between achieving
the lifestyle you want in retirement and needing
to rely on the aged pension. Spend too many
years as a contractor and you could be playing
catch-up if you don’t start making regular super
contributions.
Q: How can you build up your super?
You need to think about the best long-term
strategies to build your retirement nest egg.
• Make regular contributions from your pre-tax
income into your super.
• Take account of government incentives, like
co-contributions and spouse contributions.
• Review your investment mix of growth and
defensive assets to make sure it reflects your
life stage and risk tolerance.
Now is the time to spring into life, take control
of your retirement savings, and really own your
tomorrow. For more information, call us today.
[1] Australia Bureau of Statistics. (19 April 2013). Media release: Decline in independent
contractors.
[2] Independent Contractors Australia. Independent Contractors: How many (Australia).
independentcontractors.net.au