Taking an active interest in your super today can set you up for the lifestyle you want in the future.
When you're focused on juggling work, family life, and the many other responsibilities of adulting, looking after your super might seem like something you can put off to another day. However, putting a small amount of time aside now can make a big difference to your super over time.
Your future self will thank you.
Get your super working over time video
Simple steps to manage your super
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Check your employer is paying you the right amount of super. The super guarantee (SG) is now 11.5% of your income. -
Make sure your super fund has your email address and phone number. -
Find out what insurance you have through your super. Make sure you're not paying for something you don't need. -
Use MyGov to check if you have multiple accounts. Consider combining your super into one account to save on fees.
Why focusing on your super matters
1. It's about your future lifestyle
Your superannuation is one of the biggest investments you'll have. The amount you build up over time impacts how much money you'll have for your future. Whether you're aspiring for financial freedom or just looking to enjoy life day to day, start taking charge of your super now.
If you can afford it, even small, regular contributions can grow over time. For example, contributing an extra $20 a week, could give you an extra $50,000 when you retire.*
Use the super calculator to see where your super is heading.
Find out your super balance at retirement.
2. Your super is a long-term investment
The money that goes into your super fund is invested on your behalf and grows over time.
Many super funds are invested in companies on the ASX, so you're likely to be a shareholder in some of Australia's biggest companies. It's a good idea to log into your super fund account regularly to track your investments and understand where your hard-earned money is being invested, and how it's performing.
If your super isn't achieving its investment targets, it could leave you with a lot less money in the future.
3. You have more control than you think
Many people feel disconnected from their super, thinking it's something managed by someone else. However, you have more control over your super than you realise.
You can switch between different investment options without leaving your current fund. Or if your current fund is underperforming or charging you high fees, you can choose to move to another fund.
Visit the YourSuper Comparison tool on the ATO website to compare super funds by fees and performance.
4. Super contributions can reduce your tax
One of the benefits of super is its tax effectiveness. Contributions are taxed at a lower rate, compared to your regular income tax rate. For example, employer contributions are taxed at just 15%, while your marginal tax rate could be significantly higher.
By making voluntary contributions to your super, you can reduce your taxable income and potentially save on tax.
Work out the best way to grow your super.
ASIC does not guarantee nor accepts any legal liability whatsoever arising from or connected with the accuracy, completeness, reliability or relevancy of any of the general advice contained in this ASIC information campaign.
Background information on the $20 a week contribution example
This example is used to illustrate how small, regular contributions can significantly improve one's super balance and retirement outcomes, encouraging people to take action towards a better financial future.
The example assumes a 30-year-old individual with an income of $98,000 (based on the average full-time adult weekly earnings according to the ABS) and a superannuation balance of $51,000 (based on the average super balance from the ATO as of June 2021).
The calculations project that, with the default assumptions of the calculator, this individual would accumulate $672,169 by retirement age (67). However, if they contribute an additional $20 per week, their superannuation balance would increase to approximately $723,057 by retirement, resulting in a difference of $50,888 in today’s dollars.