Planning your super
When to start planning
It's never too early. Small steps taken now, such as making additional contributions or finding a low-fee fund that suits your needs, can have a significant impact on your retirement savings in 10, 20 or 30 years' time. Having a simple plan now will give you a greater sense of security about the future.
Visit the Australian Securities and Investments Commission's consumer website, FIDO for more information about planning for your retirement.
Calculating your retirement payout
Your final superannuation balance will depend on:
-
How much you contribute.
-
Your personal circumstances, including unexpected events in your life that may mean you don't make steady contributions.
-
Unpredictable external factors you can't control, such as investment earnings, tax and inflation.
You can use the Australian Securities and Investments Commission's superannuation calculator to work out how different decisions might affect your super. For example, you can see how making additional contributions or choosing a low-fee fund will affect your superannuation savings over the long term.
Using your super when you retire
At retirement, most superannuation funds will offer you a lump sum, a pension, or a mixture of both. You will need to think about whether to purchase a retirement income stream product with your payout.
Some funds offer generous superannuation pensions with low fees that would be hard to find elsewhere. If your fund offers only a lump sum, you may still want to buy a pension from another fund or an 'annuity' from a life insurance company. Shop around and check the fees.
First, look at your likely future needs. Find out how tax and government welfare benefits may affect your decision. For free information and helpful booklets visit the Centrelink and National Information Centre on Retirement Investments websites. If you want personal financial advice, see a licensed financial adviser.
Visit the Australian Securities and Investments Commission's consumer website, FIDO, for more information about things to consider when you are approaching retirement.