I hear a lot of people make all sorts of comments about superannuation being too hard, or too far away to think about, or can’t see the point etc. etc. and it goes on and on.
The simple fact remains that only 5% of the population has enough money at retirement to be comfortable and self-sufficient, so isn’t it about time you got serious about a financial vehicle that, if used properly really could make you financially comfortable in retirement and not having to think about the government pension?
Now I know there are limits to what each of us can contribute to our super funds and we all have to live day to day and pay our usual bills such as the home mortgage, school fees, holidays etc. and there is that matter of age and time you have until retirement age comes around.
Regardless of all the splutter that has gone on for years about superannuation and what the government is doing with it and changes they make to it, super (in general) is still a very tax-effective method to self-funding your retirement for the baulk of the population.
And, if you start early enough and stick to making consistent contributions to your super fund you could actually end up very financially comfortable when the time comes to retire.
I come across a lot of people in my day-to-day work who actually have some surplus funds available to contribute towards superannuation, yet they think because it’s for retirement they’ll get to doing something about it sometime later.
Why is it that apathy sets in about this particular subject?
Don’t be fooled into thinking that time is on your side because one day you’ll wake up and you’ll be 55, 56 years old and thinking “OMG retirement is getting close and I wish I had put more money into my super”
I’m especially passionate about superannuation when I’m speaking with sub-30 year olds about financial planning issues and try hard to get them to see the many benefits for them to get serious about their super and what it could really do for them.
That doesn’t mean to say I’m not passionate about the subject when I’m talking to people over 30 years old, of course I am!
I’m always passionate about my work and the outcomes we can achieve for people who are motivated, regardless of their age bracket.
All I’m saying here is that people who are under 30 have the added benefit of time being on their side giving them 35 + years to go to reach age 65.
WOW!… the right super fund, plus a reasonable level of consistent contributions being made into the fund AND time actually being on your side in this tax-effective financial environment will result in a terrific retirement outcome.
So, regardless of your age superannuation is still a terrific means of saving and accumulating funds for our twilight years of retirement and really should receive much more attention by the majority of the working population.
Perhaps if it did, there would be more people with more available money when it comes time to retire?
* The author of this article, Gary Fabian, is the Principal of Precision Advisory and advises on superannuation and SMSF.
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