Many people we speak to have no idea where their super is invested or how much they have invested. We find that people are disinterested because they mistakenly believe that superannuation is either something outside of their control, a poor investment or too far into the future to worry about.
The truth is, next to the family home, superannuation is probably the largest and most important investment you will ever have in your lifetime. The difference between poorly managed superannuation and well managed superannuation could be the difference between a retirement lifestyle of struggle or a comfortable and carefree retirement lifestyle.
It is important to understand that superannuation itself is not actually an investment, but rather a tax effective vehicle to hold investments of your choosing. The better the quality of investments, the better your performance and the better your retirement lifestyle. This is why it is important for you to take a more active role in managing your super.
That said, it can be confusing to many though, as superannuation has tended to become a bit of a political football.
Every year, it seems, they change the rules – the retirement age, the contributions cap and so it goes on.
No wonder many people I speak to are concerned about legislative changes being made to super – what they mean and how to work with them.
It is a cause for concern, but it helps to keep it all in perspective, give all the factors their due weight – but no more – and adjust your game plan accordingly.
That’s one of the things we do for our clients, and it helps them feel much more confident about achieving their goals – quite rightly.
