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The Association of Superannuation Funds of Australia (ASFA) said the downtime many people have over Christmas and New Year was an ideal occasion to carry out some basic checks on the status of their retirement savings and consider if help is required.
ASFA chief executive Mary Delahunty said: “The end of the year is an incredibly busy time, but once the ham or other festive food has been eaten and the Boxing Day Test has begun, investing as little as one hour to make sure you’re on track to achieve your standard-of-living retirement will reap dividends.
“This can be as simple as going over your latest statement, thinking about your risk appetite and whether it aligns with your current investments and considering seeking financial advice from an expert.”
Recent research commissioned by ASFA into Australians’ expectations of retirement highlighted the need for financial advice to be more accessible and affordable.
The survey of 1500 Australian adults found 30 per cent of respondents felt they would need between $500,000 and $1 million in superannuation to retire comfortably, with a similar proportion stating they would require between $1 million to $2 million.
These figures were well above those in the ASFA Retirement Standard, which showed a single person needed $595,000 and a couple required $690,000 at the time they finish work in order to fund a comfortable retirement.
Delahunty added the research also found only half those surveyed had sought professional advice to plan their retirement.
“It’s clear from our research that many Australians are overestimating the amount of money they need to comfortably retire, while some are underestimating it,” she said.
“This is where access to affordable and accessible financial advice could make a world of difference and ASFA supports the government’s recent announcement of tranche two of the Delivering Better Financial Outcomes reforms, which will help increase the supply of financial advice, thereby lowering the cost of high-quality advice. These reforms will help people make confident, informed decisions about their retirement.”
Aside from advice, fund members were also encouraged to look at simple things they could do to ensure their retirement savings were in good shape, including maximising super contributions.
Delahunty noted that where fund members were unlikely to reach their total of $30,000 of concessional contributions, including any employer contributions, they should consider topping them up and claiming a tax deduction in their next tax return.
As part of considering concessional contributions, she also advised superannuants to monitor their accounts to ensure they were not missing any super payments they were entitled to receive.
“The introduction of payday super from July 2026 will make it easier for you to see contributions in real time and pick up on any missed payments,” she said.
December 18, 2024
Lara Caughey
smsmagazine.com.au
12th-January-2025 | 