1. Superannuation is YOUR money
Even though you cannot access the funds for spending now, it is your money to be invested as you please. Imagine it is a bank account full of cash would you just ignore it? Think about how much you have in superannuation now. While you cannot access the cash now it is your money, treat as such.
2. A little of YOUR effort goes a long way
Spending a couple of hours per year reviewing your superannuation could make significant changes to your lifestyle in retirement. The investment choices you make over the course of your working life will significantly impact your retirement outcome. Doing nothing is making a choice, to do nothing and essentially your gambling with your retirement. Actively managing your retirement wealth prior to retirement will impact what you do in retirement such as:
· How much travel you can do
· Where you live
· When you can retire
· Services you can afford such as medication, sports and care
· Ultimately how much fun you have and how comfortable you are
3. YOUR superannuation is not set and forget
As your personal situation and life changes your superannuation needs to be reviewed. Over the course of your life a number of things will change which will mean your superannuation needs to be reviewed. Some of these things include but are not limited to:
· Your comfort with investment risks
· Your family i.e. having a child or the death of a parent
· Investment Markets
· Your job and/or salary
· Retirement and income needs
4. Invest in line with YOUR values
The majority of people have no idea where their superannuation is invested. Is it invested in Tobacco companies who are now pushing their products on children in developing countries to increase their sales? Is it invested in Coal Seam Gas companies who are displacing farmers and poisoning our country? Is it invested in companies paying bribes to see their projects approved? Basic economic theory tells me fossil fuel investments are poor investments because they utilise old and dirty technology. We now have access to more efficient, cheaper and cleaner technology. I personally want my superannuation invested in market leaders, innovators and changers.
Considering that investments which are ethical can now provide equal if not better risk analysis and returns than mainstream investments. So much so that some mainstream investments are now using ethical investment practices in their everyday decision making processes. Why wouldn’t you invest in line with your values?
The superannuation industry in Australia is the fourth largest in the world with over $1.5 trillion in assets this is larger than the Australian economy. If all Australians actively invested in line with their values we would see large scale economic, social and environmental outcomes. Invest your superannuation for the country & world you want.
5. Are YOU paying high Fees?
Do not get ripped off! I repeat do not pay more than you need to, it is your money for your retirement and do not just give it away. In saying that, when you shop around there are a range of different priced products and you often get what you pay for. This is especially true when comparing newer super funds as older super products generally have higher fees.