One of the most common questions people ask is: “Am I on the right track?” It's very tempting to compare how much you have with how much other people may have, but this is not the best way to answer that question.
How much super is enough?
The answer is: "It depends on you." It’s important to understand that there isn't one 'right' level of super. Some people might want to retire with a lifestyle where they travel every year, which might need a high retirement income. Others may be happy to stay home and enjoy a quieter life – a lifestyle which would need a lower retirement income.
It's also hard to say how much super anyone should have at any stage in their life. Some people may have started working at a very young age, while others may have decided to change their careers halfway through their lives.
As you get older, your life situation can change. For example, you might have children. And this may prompt you to approach your super a little differently. At key stages in your life, you should review your risk profile to understand whether your super is being managed in a way that suits you.
Ultimately, when thinking about whether your super is on track, you want to ask yourself if you'll have enough retirement income to support the lifestyle you’ve always dreamed of.
If you want to check how much super you might retire with, have a play with our super calculator.
It is still important to keep an eye on your super
Maximising the growth of your savings isn't the only thing to focus on when you review your super. You can also save a lot of money by making sure that you aren't paying extra fees or paying for services you don't need. For example, funds can sometimes choose to increase their fees, which affects your net returns. Or you might have accidentally allowed your super to be managed by two different funds.
These are some of the small things you can do on a regular basis to make sure your super isn't leaking money.
Conclusion
Congratulations on watching all of these videos and completing the activities. We hope you have a better understanding of why super is important, and how you can manage it to help you achieve the retirement lifestyle of your dreams.
Like we said right at the very start, maintaining your super is like servicing a car. Small decisions you make now can have a big influence on how much money you have when you retire.
There are two interactive activities that follow. Unit 10 shows you how to read your super statement, and what you should be looking out for. The final unit is a checklist that provides a list of simple tasks you can do regularly to make sure your super is on the right track.
Good luck! If you enjoyed this app, share it with your family and friends. Or, if have any further questions that we haven't addressed, please send us a message below.
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