‘Help! I have $90K in superannuation but absolutely no idea what to do with it’

Aug 09, 2019
There are a few directions you can take with your superannuation, and knowing the right path isn't always easy. Source: Getty

Q: It sounds stupid, but I am just being retired from work due to ill health, and I have no idea what I am supposed to do with my superannuation. I also do not understand money and investment talk as I have been a day-to-day battler all my life. I believe I have about $90,000 coming and do not want to lose it like others I know.

A: Firstly, this is not a stupid question – in fact, it is a very good one. The majority of Australians have no idea about how to properly manage money and superannuation and other investments, particularly where circumstances have changed in an unexpected way such as early retirement due to ill-health.

I suggest you approach an adviser at one of the industry superannuation funds, who may be able to give you recommendations at a low cost. It is important to try to get some advice to ensure that you can access all your entitlements, including social security benefits. How you go about investing these funds will depend upon your other assets and income and you should also be making appointment to talk to someone at Centrelink to understand your entitlements.

Otherwise you could have a look at moneysmart.gov.au, which has a number of calculators you could use to get a view of your potential retirement income and budget. Moneysmart is a service run by the Australian Securities and Investments Commission, so is independent of any particular financial services provider.

If you have a question for Starts at 60’s money experts, email it to [email protected].

Important information: The information provided on this website is of a general nature and for information purposes only. It does not take into account your objectives, financial situation or needs. It is not financial product advice and must not be relied upon as such. Before making any financial decision you should determine whether the information is appropriate in terms of your particular circumstances and seek advice from an independent licensed financial services professional.

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