Superannuation is an investment that everyone should know about if they are in the workforce as it can be put to good use if you do your research, setting up your future for a comfortable retirement.
What is Superannuation?
Superannuation is money that has been set aside by your employers over your working life. It is essentially money built up for you to go into your retirement or used in dire situations. The money in your super account is invested in assets to then create returns for you in the future. The managers of your super fund invest your super contributions into assets such as property, stocks, government bonds, and cash deposits.
Unfortunately, you won’t have direct control as to where your super gets invested, though their growth will result in more prosperous financial gain when you retire.
Using Superannuation Positively
Super gets invested into assets which means it goes into ethical and sustainable industries. You won’t be able to directly invest in what you want in comparison to your other investments, though your choice in a fund can have an impact as to which industries will thrive in the future. Hence is why it is essential to pick the right super fund for you.
Something important to do is to research what different super funds invest your Superannuation. Some funds will invest in industries such as armament, fossil fuels and tobacco, to name a few. Some funds only invest in businesses that pass strict ethical screen tests, and that should be something worth investing in for the future.
Multiple super accounts
Something to take into high consideration is multiple super accounts for one person; this means that someone will be paying multiple fees for the one thing and will possibly come out with less financial in the future. If someone has too many super accounts, they will likely lose one or two in the future, and all that money will go unclaimed.
Good employers will always offer to use your super rather than their stock super. There is around $14-$16 billion in lost super waiting to be claimed because of this reason. All of that money could be put to good use.
Future Super Investments
Why is super so crucial for the individual?
When it comes to retiring, the age pension will not always suffice for a comfortable retirement. This is where super comes in. Depending on which investment fund you used, you may be set for a very comfortable and stress-free retirement.
The best outcome is that someone lives a long time with their super fund invested in continually growing markets. If you are still young, take into account what type of retirement you’d like to go into, whether that be travel, relax in the garden or to be set-up for any future medical costs. It would help if you didn’t underestimate how expensive retirement is due to rising the costs of living.
So, don’t forget to do your research in which super fund to use because it can be put to good use. It’s easy to go with what your employer offers, but you need to think of the future and set yourself up for the best.
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TRS Resourcing use PRIME SUPER for those looking for an Australian Super Fund when registering with us.