The price of being a super hero when knowledge is power

It may not dazzle cinema screens like Captain Marvel and her fancy super friends, but your own super has the potential to make a powerful difference to your future. Here’s why.

Superhero fans are enjoying a purple patch at the moment.

Captain Marvel, which gives girl power a great new meaning, opened in cinemas last week, while Avengers: Endgame debuts next month.

We’ve also got more action from Wonder Woman in the works, plus extra Spider-Man and X-men movies out later this year.

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But what about everyone’s other favourite super thing: superannuation?

Sure, it may not fly, shoot webs or swing a lasso of truth, but your super has incredible power if harnessed for good.

The path to this power is simple, and these are the first steps.

STEP ONE: Check your super balance

Many people have no idea how much superannuation they have, despite it being their second-largest asset after their home.

Captain Marvel has just powered into cinemas. You too can be a super hero. Picture: AP

It’s your money, just like cash in the bank or shares. The only difference is it’s locked away until later in life. You can’t plan for the future if you don’t know what you have today.

Your recent super fund statements, your fund’s website or the Federal Government’s my.gov.au site can show a clear picture of your super savings.

STEP TWO: Work out what you’ll need to be happy

This dollar figure will differ for everyone depending on the lifestyle they want, the age they want to retire, and what they’re prepared to sacrifice in retirement.

Help is at hand. The Australian Securities and Investments Commission’s moneysmart.gov.au website has several free online calculators to project retirement balances, forecast expected income and maximise super contributions.

If you prefer face-to-face rather than face-to-screen, financial planners can help with these calculations.

While current retirees grew up in more frugal times, the trappings of modern lifestyles — travel, technology and dining out — will cost a lot more than the typical age pension payment of $916 a fortnight.

The sooner you start, the bigger your store of life savings will become. Picture: Thinkstock

STEP THREE: Make super saving automatic

Getting started is often the biggest hurdle, because once we set up salary sacrifice or other regular extra super contributions we often quickly don’t notice the missing money.

The earlier you start, the better. ASIC’s calculators show that a worker aged 30 with a typical wage and super balance could boost their final super balance from $444,000 to more than $1 million by pumping in an extra 10 per cent of their wage each year.

But by age 40 they would need to inject an extra 30 per cent of their wage, and by age 50 it becomes 50 per cent.

That’s because compounding interest — a true super power — works best over decades rather than years.

You don’t have to shoot for the stars and a $1 million super balance.

The majority of retirees are still going to rely some age pension payments for decades to come, but just having an extra $100,000 in super can potentially deliver $100 a week of additional annual income.

That can be achieved by adding an extra $20-$50 each week to superannuation, depending on your age.

The price of being your own super hero isn’t too financially painful.

@keanmoney