Protecting your super during this crisis

Protecting your super during this crisis

No More Practice Education

The fallout from the COVID-19 pandemic has left many Australians concerned for their health and financial security. The crisis has required unprecedented containment measures and had severe effects on domestic and global markets.

While most coverage focuses on what’s happening right now – understandably – you may also be concerned about the pandemic’s effects further down the track, especially as it pertains to your superannuation.

Fortunately, there are several steps you can take to ensure you’re providing yourself the best opportunity for a comfortable retirement:

Firstly, ensure your employer is paying in the right amount of super

  • Organise online member access with your super fund, and check your transactions regularly to see what your employer has contributed. If they are contributing quarterly or more irregularly, ask your employer if they can change that to monthly. Time and money make a difference, the more regularly you invest, the faster money grows.
  • Check your myGov account and your super for extra contributions to your super account, for instance, there could be unexpected irregular payments made by employers (from past jobs) In our gig economy, it can happen, a colleague we know suddenly received a contribution of $850 from a job he had in the late ’90s.

Review, and consider consolidating your super

  • Your myGov account will show you how many different super accounts you hold. Each has an administration fee, and many can have insurance attached.
  • Consolidating into one super account that meets your needs can give your super a boost, through reduced costs alone. Whether this is by only paying one administration fee, or reduced insurance premiums.
  • While it is important to have insurance to protect your loved ones, and ensuring they are looked after in the event something happens to you, having it with too many super funds or Insurers can mean you are paying insurance premiums multiple times, and sometimes, depending on the insurance policy, you may not be able to claim on it. You should take the time to review your insurance cover on a regular basis or obtain professional financial advice if your circumstances change.

So consolidating your super is a good thing, but how do you go about it?

  • You can rollover using your super funds services – just complete the rollover form, either online in the online application form, or by downloading the form, completing by hand and sending it in.
  • Using myGov, you can choose the super fund you want the other super funds rolled into, and organise directly online. It’s as simple as that.

Money for later – Food for thought?

  • While for many of us, it’s tough now, it’s still worth giving some thought to how you will manage to have some funds for later.
  • Moneysmart.gov.au calculators can help you see how using super or putting some extra monies away can help you later.
    • This helps you work out how much super you can have for later, or how fees can affect your final super balance,
    • While this will help you to make sure you are receiving the right amount of super, find out if you are eligible for government contributions. Also how putting some additional contributions away can help your super grow.

The opinions expressed in this content are those of the author shown, and do not necessarily represent those of No More Practice or its related entities. This information is general in nature and does not take into account your personal objectives, financial situation or needs and so you should consider its appropriateness having regard to these factors before acting on it. To view our full terms and conditions, click here.

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