For many Australians, superannuation is one of their largest assets. Yet despite this, it is often left on autopilot for years at a time.
While investment performance is important, regularly reviewing your superannuation arrangements can help ensure your retirement savings continue to align with your circumstances, goals and retirement plans.
Here are some key areas worth reviewing.
Have you reviewed your beneficiary nominations?
Many people are unaware that their superannuation does not automatically form part of their estate.
The distribution of your superannuation benefits is often determined by beneficiary nominations and the rules of your superannuation fund. As a result, it is important to review these arrangements following major life events such as:
- Marriage or divorce
- Commencing or ending a de facto relationship
- The birth of children or grandchildren
- The death of a family member
- Significant changes in financial circumstances
A beneficiary nomination that was appropriate five or ten years ago may no longer reflect your wishes today.
Are you in the right investment option?
When people join a superannuation fund, they often select an investment option and rarely revisit it.
However, your objectives and tolerance for risk can change significantly throughout your working life. The investment strategy that suited you in your 30s may not be appropriate as retirement approaches.
Regularly reviewing your investment mix can help ensure your super remains aligned with your goals, risk profile and retirement objectives.
Are you making the most of contribution opportunities?
Superannuation rules and contribution limits change over time.
Depending on your circumstances, there may be opportunities to boost your retirement savings through strategies such as:
- Salary sacrifice contributions
- Personal deductible contributions
- Spouse contributions
- Contribution splitting arrangements
Understanding the contribution options available can help you maximise your retirement savings while remaining within the applicable contribution limits.
Will your retirement plans still work?
Retirement goals often evolve over time.
You may have initially planned to retire at age 67, only to find yourself considering an earlier transition to retirement. Alternatively, changing economic conditions, investment markets or family circumstances may influence the amount of capital you’ll require.
Reviewing your superannuation strategy regularly can help ensure your retirement planning remains aligned with your long-term objectives.
Is your super fund still meeting your needs?
The superannuation landscape has changed considerably over the past decade.
Many retail and industry superannuation funds now offer greater investment choice, improved online access and increased flexibility than ever before. At the same time, some investors may find that their circumstances have become more complex and warrant a greater level of control and personal involvement.
For this reason, it can be beneficial to periodically assess whether your current superannuation arrangements continue to meet your needs and objectives.
A simple review can make a big difference
A regular review of your superannuation can provide peace of mind that your retirement savings remain aligned with your goals and personal circumstances.
If you haven’t reviewed your superannuation arrangements recently, now may be a good time to revisit your beneficiary nominations, investment strategy, contribution opportunities and retirement objectives.