When you first start out in the workforce, superannuation doesn't seem particularly important. It's something that only affects you at retirement age - which isn't something the average twenty-something likes to think about. Fortunately, preparing for this far-off future doesn't take much time or wherewithal - and the benefits can be significant.
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The Abbott government's deal with the Palmer United Party to freeze the minimum superannuation contribution rate at 9.5% until 2021 will not only cost retirees, it will also see future governments forced to bear the brunt of an increased reliance on the Age Pension. There has been considerable discussion of the impacts of the deal on both the wages of workers and their retirement savings. However, asserted effects have been either speculative (in the case of wages) or limited to a few hypothetical examples (in the case of retirement savings).
There's no shortage of advice for ways to retire comfortably, yet actually setting yourself up for it can be a different story. Believe it or not, building wealth to retire financially comfortable is actually simpler than we think. The challenge doesn't lie in the knowledge - but instead translating that knowledge into results that are meaningful.
Hey guys, I have a tricky ethical question for you. I'm going over my superannuation account, and looking into investment options. My fund offers a socially responsible investment (SRI) option, and a high-growth option. Looking at the trends over the last 10 years, the SRI has kept more or less on par with a balanced investment.
"Why should a 20-something bother thinking about their retirement?" This was my mentality up to the age of 23. I wanted to live in the 'now' and being 60 was simply unfathomable. Anyway, what if I get hit by a bus next year? Then I would have been squirreling away extra money for nothing. My employer already makes contributions to my retirement, so that will be fine.
Some people have serious financial problems, but that's not you, right?. You've got a regular savings account, have cleaned up your high-interest debts, have all your super funds consolidated, and all-around are in pretty good financial shape. So where do you go from here? What's the next step for those of us who know the basics but want to make our money work harder?