Super Maximiser
The Super Maximiser can give you an estimate of how much super you could have when you retire.
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- Superannuation
- Your one SuperSolution for life, built on world class investments.
- Self Managed Super
- Bolster your portfolio with unique investment options
- Retirement
- Financial flexibility, into and throughout retirement.
- Fund investors
- Innovative strategies, traditionally reserved for the world's largest investors
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Say hello to the future you
Why picturing yourself at 70 can get you moving today
Everyone has great intentions about saving for the future. We all think we'll start contributing more in our super...tomorrow. Tomorrow is when the latest financial crunch has passed, when we've paid off the Visa, when the kids don't need so much, or when we get back from our holiday. But somehow tomorrow never arrives.
The problem is not that we don't want to contribute more to our super. We all have great intentions, and we know that super is important and retirement is coming. The problem is that it's very tough to start acting on our good intentions.
Researchers at Stanford University have recently tackled this problem at its psychological core with a project to close the gap and show people how they'll look when they're retirement age. The concept is that if you can see and relate to an older version of yourself, for example age 70, you'll have greater incentive to connect with the "future you" and start saving more regularly. Using new virtual reality techniques, researchers have tried to connect people in their early 20s to avatar-like images of themselves in retirement – making them feel more compelled to save for the person they will become.
So how would you feel if you could speak to yourself at age 70, when the money for those cappuccinos you bought at work this week could be paying for your week's groceries? Do you even know if you'll have the money you'll need at 70, or if you're contributing enough to your super today?
A day late and a dollar short?
If you're feeling worried about your Super, it's never too late to make a change. Geoff Peck, who leads our superannuation business, says that you need to tackle your situation head on and start with your reality: know what you have now in your super and what you're likely to need later. A Super Maximiser Calculator will tell you what you might need when you retire. It can be a powerful motivator to start saving for your future today.
20s: Get a head start
Your retirement is probably the last thing on your mind. But now is the only time you can get a head start. Saving now is powerful because the longer your money is invested, the more it can earn for you before you retire.
To do list:
- Set up an automatic contribution of just $10 extra a week – the average price of three takeaway coffees. It will get you in the important habit of being proactive about your future.
- Find out if you qualify for the Government co-contribution for low to middle-income earners. The Government matches personal after-tax contributions paid by you into your superannuation fund of up to $1000 each year if you're eligible.
30s: Super-size your super (and hold the tax!)
This is the time to make the most of your income. Now that you're in your 30s, you're probably more established in your career, which means your salary and income tax are increasing. By putting in place a contribution strategy like salary sacrificing, you can minimise the tax on your salary and increase your retirement savings.
To do list:
- Check with your HR or payroll department to find out if you can make regular salary sacrifice contributions to your super fund.
- You may also be able to contribute one-off payments like your annual bonus.
40s: Give it a boost
If you're in your 40s, you can boost saving for your retirement by sacrificing an even bigger part of your salary to maximise your chances of achieving larger retirement income streams and to reduce your taxes.
To do list:
- It's tempting to invest your money outside the superfund, but stop and think: you'll probably pay higher taxes! Instead, devote extra money to your super where low tax ensures you have more left to invest.
- Consider contributing your annual bonus as a one-off payment.
- Learn about co-contributions and spouse contributions. Are you eligible?
50s: Ready, set, retirement!
In your 50s you're approaching retirement age. It may be necessary for you to increase your retirement fund.
To do list:
- Redirect money to your super fund via salary sacrifice or personal post-tax contributions.
How to contribute more, without the pain!
- BPAY – make one-off contributions to your super using BPAY® and your phone or internet banking service.
- Direct Debit – set up a regular payment via Internet Banking.
- Send a cheque payable to Russell SuperSolution Master Trust with our contribution by cheque form - Remember to include your name and member number on the back of the cheque.
- Make one-off payments or make use of spouse contributions or co-contributions to raise your joint retirement benefits.
® Registered to BPAY Pty Ltd ABN 69 079 137 518
60s: Time to cruise
It's time to enjoy the benefits of your good choices in your 60's. Once you've reached your preservation age, you can still work either full-time or part-time while supplementing your income with income from your super savings.
To do list:
- You can ease into retirement without sacrificing any income through a transition to retirement strategy.