Are You Super Smart About Superannuation?
Let’s be realistic, many of us find it pretty hard to care about superannuation in our 20s. It’s going to be 40+ years until we actually get to see any of it, and in the meantime we’re preoccupied with paying your rent and getting ahead.
So we’re not here to tell you that you should be staying up at night, fretting about your retirement savings. Hell no. But there are some key things you should get on top of today, so 65-year-old you will look back at your 20-something self with pride.
Watch our Very Intense Quiz about super, and then read on for some essential things to know.
Unless your working for yourself, your employer should be making standard, compulsory contributions into your super fund. The amount should be equivalent to 9.5% of your salary.
If you want your life to be cushier when you’re retired, then you can make voluntary contributions on top of this rate. It all adds up.
Contribution rate increases on the cards
The standard contribution rate is going to grow in a few years time – to 10% in 2021, increasing to 12% by 2025.
Consolidating your super
When you’re working an after-school job or getting your first job out of uni, you might not be paying too much attention to super funds. For a lot of us, this means we end up with several super accounts – the average Australian has three super accounts. The result? $13.5 billion worth of lost super across the country.
Consolidating your super accounts means you’ll spend less on fees, and have less paperwork to deal with. It’s really easy, too.