While making sure you have enough money to take care of your day-to-day expenses is paramount, it’s important to not lose sight of the long-term – making sure to stay on top of your superannuation. The good news is that it’s possible to do this without making a considerable dent in your budget. Here are five simple ways to stay on top of your super.
Recent Federal Government initiatives (namely Job Seeker and JobKeeper) have helped to enable Australians to continue receiving income in this time of crisis.
However, recipients of the JobSeeker and JobKeeper payments may not be earning any superannuation for the six months that these stimulus programs are being administered.
While making sure you have enough money to take care of your day-to-day expenses is paramount, it’s important to not lose sight of the long-term – making sure to stay on top of your superannuation.
The good news is that it’s possible to do this without making a considerable dent in your budget. Here are five simple ways to stay on top of your super.
- Consolidate your super accounts
- Choose the right super fund
- Transfer your loose change to your super
- Take advantage of cashback programs
- Look at sharing super with your spouse
1. Consolidate your super accounts
If you have more than one super fund, you may be paying duplicate sets of fees and insurance premiums unnecessarily.
At FairVine Super, we recently heard from a woman who had more than $500K spread across four super funds. She was paying thousands of dollars extra in fees and insurance premiums every year, and the worst part was, she didn’t even know what she was covered for. She would have been able to get the same insurance protection by consolidating to a single fund, with the fees she was previously paying contributing to a much larger balance than she had today.
You can check if you have more than one super fund by going to your myGov account. From there, you can also consolidate your super accounts by transferring the balance of the separate funds to a single fund. Before you do so, make sure you read the section below: choose the right super fund.
2. Choose the right super fund.
The next step is making sure you have the right super fund. There’s no one super fund that’s better than all the others – it largely comes down to your specific financial situation and personal preference.
FairVine Super, for instance, is a super fund designed for women (although it’s open to all Australians), with savings tools built-in that actively help members save extra money to their super. Since it’s designed to reduce the dependence members have on employer super contributions, it’s also a good fund for workers who are currently receiving the JobSeeker or JobKeeper payment (and hence not receiving contributions from an employer).
FairVine Super currently has a FairGo promotion where new and existing members who have lost their jobs due to COVID-19 receive 50% off their super fees until the end of 2020, effectively reducing the fees to only 0.6%. This discount can put hundreds of dollars back into the super funds of members who need the extra money.
Notwithstanding, we recommend speaking to a financial advisor before making any decision on which super fund is right for you.
3. Transfer your loose change to your super
Have you ever had a loose change jar that you emptied all the coins in your wallet into? Consider making one of these for your super fund. It’s just 20c here, 50c there – nothing that will really make a dent in your budget, but over time, this can add up to a significant amount.
FairVine Super has a feature called RoundUps that automates this process for you. Once you’ve activated the feature in your member portal, all of your everyday purchases through your nominated bank account are rounded up to the nearest dollar, with the difference automatically transferred to your super as additional savings. We’ve crunched the numbers: transferring only $5 a day to your super from the age of 30 results in an additional $120K* in your super fund by the time you retire.
“...we recommend speaking to a financial advisor before making any decision on which super fund is right for you.”
4. Take advantage of cashback programs
Cashback programs are designed to reward your loyalty when you shop at certain brands by giving you a cash rebate that’s based off a percentage of your purchase. If the brand was offering a 10% rebate, for instance, then you would receive $10 as a cashback if you spent $100 with them.
FairVine Super is the only super fund in Australia with a built-in online shopping platform that automatically applies cashback rebates from participating retailers directly to your super fund. Called FairRewards, it offers cashback rebates of up to 20% from more than 300 participating retailers, including The Iconic, HelloFresh, Microsoft, Booktopia, CottonOn and Lululemon.
5. Look at sharing super with your spouse
A little known fact is that eligible spouses are able to share super – yet many couples don’t take advantage of it. In certain situations, there can be a significant financial or tax benefit for doing so.
There are a several rules and criteria around who can do this and how much can be contributed, so it’s worth checking in with your super fund to see what’s possible.
FairVine Super has a feature called FairShare that makes the process significantly easier, provided both spouses belong to FairVine Super.
* Our calculations are performed using ASIC's compound interest calculator and are based on an after fee annual growth of CPI + 3% (FairVine’s Growth option projected return), daily after tax concessional contributions of $5 and investment time frame of 37 years (retiring at 67 years old). There is no guarantee that FairVine will achieve the assumed growth rate or that the projected balances will be achieved. The calculations are not intended to be relied upon for making a financial product decisions and we advise you to seek a professional financial advisor to consider if FairVine is appropriate for you. Results are shown in today's dollars without adjusting for inflation.