“You can be young without money but you can’t be old without it.” – Tennessee Williams
One reason why I work so hard is so that I can retire comfortably. I plan on achieving this by making my money work for me and I expect superannuation to play a big role in this.
So what is superannuation?
The Australian Taxation Office (ATO) defines superannuation as “money set aside over your lifetime to provide for your retirement”.
From your first job as a teenager, employers are legally required to pay a minimum of 9.5% of your annual wage towards superannuation.
Sadly, even though superannuation plays a crucial role in the lives of retirees, its importance is often overlooked until we’re actually ready to retire.
It’s mind boggling how when it comes to buying a car or holiday people explore all options to get bang for buck, yet when it comes to superannuation most of us have no idea.
I know this because whenever I’m sitting down with one of my clients helping them assess their finances, I always make a point of enquiring about it.
Alarmingly, the response is usually filled with uncertainty.
They either have it scattered across several organisations, are unaware how much they’ve accumulated or couldn’t even tell you which company they’re with.
Unfortunately, this means superannuation funds can get away with charging people high fees (in the industry we call these organisations “fat cats”).
That’s why I’m so happy to have stumbled across Stockspot. They’re an organisation who, amongst other things, provide free reports about which companies deliver results.
If you don’t know how your superannuation fund compares to others, fill in the details on Stockspot’s website and they will tell you whether or not your fund’s a fat cat.
They analyse various organisational fees, past performances and extra benefits – all of which can help you determine who to trust with your superannuation.
Take the time to do a quick review, so that next time you’re asked about your superannuation you can answer with the peace of mind knowing that it’s in good hands.
Ayda Shabanz xx