Five simple ways you can help maximise your superannuation for a comfortable retirement

Retirement is a time to relax and enjoy your golden years after a long career. However, for an increasing number of retirees, this ideal is far from reality.

For those approaching retirement with inadequate superannuation, the experience can be both daunting and stressful. With rising living costs and longer life expectancies, having a substantial savings cushion is more crucial than ever for a comfortable retirement. Unfortunately, many find it challenging to amass a significant nest egg by the time they retire.

While this prospect may seem grim, it’s important to remember that all is not lost. There are several ways to ensure your savings are on track so you can enjoy the retirement of your dreams.

In light of this, MLC Super Fund (MLC) encourages Australians to take the time to read their annual superannuation statements instead of overlooking them, as this is vital “to ensure you’re getting the most out of your nest egg”.

“By following some quick, simple tips on what to look for in your annual super statement you can help maximise one of your biggest assets – your retirement savings,” said MLC General Manager Workplace Solutions, Jason Marler.

“Getting the most out of your super starts with five key check points when reviewing your annual statement each year – and best of all – they’re free.”

MLC suggests the following five tips for reviewing your super statement:

1. Check your balance: It’s important to be aware of your super balance and assess how it compares to your retirement goals.
2. Check where your super is invested against your risk appetite: Understanding how your super is invested can help you determine if the returns are appropriate. Check that your portfolio allocation and how much investment risk you’re willing to take align with your investment goals.
3. Check your super’s investment performance: Checking your super fund’s investment performance is one of the easiest ways you can maximise your retirement savings. See how your super fund has performed over the last 12 months, as well as its long-term performance.
4. Check the fees you’re paying: Understand the administration and investment fees you’re paying with your super fund, and the benefits you receive in return.
5. Check your insurance cover: Most people have life and total and permanent disability (TPD) included in their super. It’s important to regularly check if your level of insurance cover is appropriate and if you’ve nominated beneficiaries.”

“Super can be complicated, but these simple steps are an easy way to further engage with your super to ensure you’re getting the most out of your nest egg,” Marler said.

“MLC is committed to providing members with accessible financial knowledge to empower informed choices, while offering online tools and resources to help members manage their retirement savings and build financial confidence so they can have the freedom to enjoy retirement.”

This financial insight into building a solid retirement nest egg is particularly timely, given that the Association of Superannuation Funds of Australia (ASFA) recently announced that the cost of maintaining a comfortable retirement has increased by 3.7 per cent over the last 12 months due to rising home and vehicle insurance premiums, along with higher private health insurance costs.

As a result of these financial pressures, retired couples now need $73,337 per year to enjoy a comfortable lifestyle, while singles require $52,085.

ASFA CEO, Mary Delahunty, explained that “retirees are managing an increasingly difficult landscape where the costs of essential goods and services keep rising”.

“Health, home, and transport are vital to their well-being, yet the expenses tied to these necessities are steadily increasing,” she noted.

Delahunty emphasised the importance of both compulsory superannuation and voluntary contributions to help ease the burden of these rising costs.

“For Australians to have the retirement they deserve, it’s crucial that they have access to adequate superannuation savings,” she said.

IMPORTANT LEGAL INFO This article is of a general nature and FYI only, because it doesn’t take into account your financial or legal situation, objectives or needs. That means it’s not financial product or legal advice and shouldn’t be relied upon as if it is. Before making a financial or legal decision, you should work out if the info is appropriate for your situation and get independent, licensed financial services or legal advice.