Super shocker: 1 in 4 of us too poor to retire
And even more of us aren't sure if we have enough superannuation.
Superannuation is meant to fund Australians in our post-work life, but millions of us are worried that won't happen.
Almost 1 in 4 (23%) of us think we don't have enough money in our superannuation to get by once we retire, new Finder research shows.
That adds up to 4.6 million Australians in a potential financial crisis as they get older.
Because superannuation is paid automatically by our employers, many of us are also clueless about how much we've got.
A worrying 27% of us say we don't know if our superannuation is adequate.
A further 22% say they'll be OK but will have to cut down on spending, while another 11% don't think super alone will cover them but have other investments that will help.
Just 17% of us believe our superannuation will be enough.
How can you make superannuation work for you?
Because the Age Pension is means tested, you shouldn't assume that you'll automatically get it or that it will be enough to live on.
The maximum age pension is $1,002.50 a fortnight – so just over $26,000 a year.
For most of us, that won't be adequate, even if you own your own home.
These are my top 4 tips for getting more from your superannuation, regardless of your age.
- Make sure you're in the right fund. Excessive fees can eat into your final superannuation balance, so check to make sure you're not paying over the odds. Also make sure you consolidate if you're in multiple funds – otherwise you're just losing money needlessly. We have a detailed guide on how to consolidate your superannuation.
- Make extra super contributions Extra money added into your superannuation is more tax effective and helps protect your future. Again, check out our full easy guide to how extra super contributions work.
- Start small and start now Every dollar makes a difference. Even if you're just adding $100 a month extra into your superannuation, that will help long term.
- Make sure your super is being paid Check to make sure your employer is paying into your superannuation at the required rate. Mistakes happen, but you're the one who'll be out of pocket if things go wrong.
Compare super funds and see if you're getting the best results to fund you in retirement.
