Under 40? Here are five practical steps to build your future.
Young educators are thinking about saving for retirement earlier than expected, with new research from NGS Super showing that 79% of those under 35 say it’s important to them. Yet 4 in 5 don’t know their super balance – highlighting a clear gap between awareness and action.
Here are five practical steps you can take to get on top of your super.
- Find and manage your super in one place
Start by logging into your account. If you’re unsure where your super is, you can check via your MyGov ATO account. If you have multiple accounts with multiple funds, consider whether consolidating into one fund makes sense. Fewer accounts can mean fewer fees and easier management.While you’re there, make sure your employer contributions are being paid. Missing payments can go unnoticed if you’re not checking regularly.
- Understand how your super is invested
Check how your super is invested and whether your investment options align with your age and goals. Understanding your investment mix is an important first step in making informed decisions over time. - Start early—even small steps add up
With the compounding effect of investment returns, changes made early in your career can have a significant impact on your retirement. Leaving it too late gives you less time to improve your position if you realise you’re not on track. - Take advantage of government incentives
If you earn below the government’s income threshold, you may be eligible for a super co‑contribution when you make an after‑tax personal contribution. The government adds 50 cents for every $1 you contribute, up to $500, with this amount reducing as your income increases and cutting out at the upper threshold. Thresholds are indexed each year, so eligibility and payment amounts can change. Learn more on the ATO website. - Consider salary sacrifice if it suits you
If your marginal tax rate is higher than the 15% contributions tax in super, salary sacrificing could be worth considering. Regular contributions can build over time thanks to compound interest.
The bottom line
For most people, it starts with simple steps – knowing your balance, checking where your super is invested and understanding the options available to you. These are small actions, but over time they can make a meaningful difference.
Confidence starts with knowledge.
NGS Super has a new complimentary Virtual Advice tool which may be able to help guide you through some general information about super. If you would prefer to speak to a real person, book a complimentary chat with an NGS Super Specialist.
This is general information only and does not take into account your objectives, financial situation or needs. Before acting on this information, or making an investment decision, consider whether it is appropriate to you and read our FSG, PDS and TMD available at ngssuper.com.au.
Issued by NGS Super Pty Ltd ABN 46 003 491 487 and AFSL 233 154.
