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Episode 7 – Money Matters: Investing in your future with superannuation

A common question I am often asked is, 'How much do I need in superannuation for retirement?'

Most of us dream of a stress-free and comfortable retirement. But achieving this goal depends on how well we manage our superannuation during our working years, as this will ultimately determine our retirement lifestyle and opportunities.

There are so many superannuation options available, such as industry, retail, investment platforms, and self-managed superannuation funds, each offering various investment choices and fee structures. To determine the best fit for your needs, you need to do your research.

A common question I am often asked is, ‘How much do I need in superannuation for retirement?’

Unfortunately, there’s no one-size-fits-all answer to this question. It’s much like asking how much you need to buy a house. It all depends on what you want to do in retirement and the lifestyle you want to have. If you plan to travel overseas annually, your needs will differ significantly from someone who prefers not to travel.

Thankfully, there are plenty of online calculators available to help you figure this out.

By entering your retirement goals and aspirations, these calculators can estimate the balance you will need. This is important because if a calculator suggests you need a million dollars, but you only have $200,000, you may need to re-evaluate your goals or increase your savings.

In today’s episode, I will discuss the classifications provided by the Association of Superannuation Funds of Australia for achieving either a comfortable or modest retirement lifestyle. Comparing these two lifestyles reveals significant differences. And if you are aiming for a comfortable retirement, acting now to increase your superannuation balance is essential.

I will explore the various types of contributions you can make to your superannuation and the tax implications of these.

I also cannot emphasise enough the importance of designating a beneficiary and keeping this information up to date, especially when your life circumstances change.

Remember that what you have saved in superannuation during your working years will dictate your options in retirement. So understanding and having control of your super now is crucial.

I hope this discussion has sparked your interest and motivated you to take an active role in managing your superannuation, ensuring the retirement lifestyle you desire becomes a reality.

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