While it may not seem like it yet, your superannuation savings or ‘super’ as it is more commonly called, is likely to be your greatest asset (aside from the family home) as you approach retirement.
A common misconception about super is that it is a type of investment, whereas in reality it is simply a structure, within which, investments are held. It’s an important distinction, as many people overlook the importance of super and the role it plays in growing your retirement nest egg.
For instance, those who pay little attention to their superannuation fund, may find that their superannuation savings are held in the default (or ‘balanced’ option), which may not be ideally suited to their personal circumstances, retirement goals or objectives, or what we call your “tolerance towards risk.”
This could mean reaching retirement age with less money in your super fund than you may have otherwise have received had the investments been more appropriately structured according to your needs, situation and objectives.
The federal government also offers a range of tax-effective incentives to encourage Australians to save for their retirement using the superannuation environment, so it’s important to consider how you may be able to utilise these incentives to your advantage.
At Element Wealth Solutions, we understand the complexities of the superannuation environment including self-managed superannuation funds (SMSFs) and can help you to structure a superannuation strategy that’s right for you.
To find out more about our approach to superannuation, please contact us.