When you’re young and starting out in your working life, it’s exciting to be earning an income. Even more exciting is spending your money – socialising with friends, shopping and going on holidays - life’s a never ending party …..
It’s fine at the time, but to keep the party going you need to play it right, by saving for the future too. A common misconception is thinking you can’t afford to put anything away or that you have plenty of time to save later. Thinking things like: ‘I’m not earning enough – I’ll start to salary sacrifice when I’m making more’ or ‘I’ve got a few expenses and loans and can’t afford to contribute a little extra right now’.
We hate to be a party pooper, but the bottom line is that not thinking about your super now can really cost you later on in life.
Party now, pay for it later
The ‘live now, save later’ approach could leave you short-changed in retirement.
The most compelling reason to plan your retirement party as soon as possible is because you have time on your side …
... time to accrue the most in contributions
… time to ride out the highs and lows of a higher-risk investment strategy
… time to benefit from compounding investment returns on a steadily growing account balance.
Things you can do to get the (future) party started
There are a few simple things you can do to get started - they are quick and easy and will really make a difference to your super balance in the future:
Choose how your money is invested
This one won’t even cost you a penny! Ensure you money’s invested in such a way that you can maximise returns over time.
Because you have a long investment timeframe and cannot access your super for what seems like an eternity, you can afford to invest your super in higher-growth options that will see your account balance grow the most. And while there will be negative years here and there, overall you’ll benefit from positive returns.
Learn more about investing your super here.
If you need help you can get free investment advice from a planner over the phone, call us to sort this out.
Have one super account
Here’s another one which won’t cost you anything! Many young Australians have several super accounts: according to ASFA, 30% of 15-25 year olds have more than one super account and 20% of 26-30 year olds have 3 or more super accounts!
The problem is, having several super accounts means that you’re paying several sets of fees, which can really cost you over time. Make your super work efficiently and keep it all together.
You can combine all your super accounts into your Maritime Super account online here.
Chip in a little more
Ask any money expert, and they will tell you that you should start putting extra into your super as soon as possible – preferably, as soon as you start working.
Make some voluntary contributions on top of your employer’s contributions – they don’t even have to be large amounts. By starting early and small, your hip pocket won’t notice the difference, but your super balance WILL notice it down the track!
See for yourself how much of a difference small but regular contributions will make – try our Retirement Income calculator.
Take your super with you
Chances are you’ll have a few jobs between now and retirement. If you do change jobs, make an active decision where your super should go and take Maritime Super with you to your next job.
Maritime Super is part of the Industry SuperFunds collective, and like all Industry SuperFunds, have never paid commissions to financial planners and have strong long-term investment performance.
Even better still, Industry SuperFunds invest in things that create jobs and keep Aussie businesses strong.
The information on this page has been issued by Maritime Financial Services Pty Limited (MFS). It contains general information that doesn’t take into account your individual objectives, financial situation or needs. It’s important to consider how appropriate this general information is in relation to your situation before making an investment decision. We recommend that you seek financial advice before making any decisions regarding your super or investments. The information on this page is current at the time of publishing.