Super checklist: if you can’t answer these questions ask for help


How well do you know your super? Are you on track for retirement? And what’s the most tax-effective way to add to your super?

If you can answer questions such as these confidently, good for you – you’ve clearly got the situation under control. However, if you’re not so sure, maybe it’s time to get some help.

“Retirement is changing,” says Lynda Cross, the head of guidance at Aware Super. “It isn’t a gold watch moment anymore – it is far more nuanced.”

Think about retirement as a rewiring, giving you more time to do the things you love.Credit: Getty Images

You can reach out for various levels of advice and assistance.

To start with, you can access free information and calculators from your super fund, or from sources such as the MoneySmart website and Services Australia. You should also be able to get free general advice from your super fund. Or, you can pay for different levels of advice from a financial planner.

Research by Aware Super discovered that people who access general advice are up to 2.6 times more likely to boost their retirement success, Cross says. So, it may well pay to reach out.

Here are four questions. Do you feel confident in your ability to answer them?

1. Am I on track for retirement?

To answer this one, you’ll need to work out what sort of lifestyle you’d like to enjoy in retirement, how much money you’ll need for that, and whether your super is on track to meet that goal.

As a starting point, the ASFA Retirement Standards lay out the typical living costs for retirees, and how much super you’ll need for different lifestyles. To work out whether your super is on track, and to measure the effect of making extra super contributions, try using a retirement planner.

Retirement is changing, says Lynda Cross.

Bear in mind that different calculators may come up with different results. Your super fund may be able to help guide you through this process. If you want to take a deeper dive into your personal situation, seek help from a qualified financial planner.

2. How can I boost my super?

Whether you’re on track for retirement or not, it can pay to make extra contributions to your super, Cross says. “If you can find a bit extra to contribute, it’s always a good idea in the long run,” she says.

But what’s the best way to make extra contributions? “There are a few to consider,” Cross says.

“You can make voluntary contributions from your after-tax money, or your pre-tax money, and there are different limits that apply to each type.

“We recommend getting in touch with your super fund for advice on the best option for you.”

You can also get a run-down of the different types of contributions from MoneySmart – a federal government website that helps Australians take control of their money with free tools, tips and guidance. Or talk to your accountant or financial planner.

3. Is my super invested in a way that aligns with my risk tolerance and values?

These days, we can choose where our super is invested – not just in terms of which fund we’re in, but which investment option we are in within that fund. We can choose from a range of high-risk or low-risk investment options, as well as ethical or sustainable options.

The default setting in your super fund may be fine – and some funds will adjust your investment options automatically as you age.

But if you do want to explore different investment options, start by logging into your super fund to see where your money is going. You can then seek advice from your fund about changing your investment option, or search for a new fund.

“Each person is unique in how they feel about these things,” Cross says.

4. Would I be better off in an SMSF?

A self-managed super fund (SMSF) allows you to take full control over your investments.

It can be a good option for some people with balances of $500,000-plus, Cross says. However, it does require work and expertise, and comes with compliance responsibilities and a level of risk.

You can do some basic research into SMSFs yourself, but this is one area where you should definitely seek some expert advice from a financial adviser or accountant before jumping in.

• Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.