Turbocharge your financial fitness in a few simple steps
If you want to whip your finances into shape devoting just a small amount of attention to one long-term investment can reap big benefits.
There is one simple thing you can do that has the potential to make a big difference (that you probably haven’t given much thought to): Sorting out your super.
Why your super matters right now
If you’re a long way off retiring, it’s easy to think that super isn’t something you need to worry about. There are two main reasons why that’s not the case.
1. You earn it
Although it may not feel like your money, all those dollars flowing into your super account are a result of your hard work. It’s not donated by your employer or the Government. Ever since you got your first job, almost one dollar for every ten you’ve earned has been put in your super account. If you discovered that nearly a tenth of your income was being diverted into a fixed-term savings account, wouldn’t you want to know what the interest rate and fees were?
2. The compounding effect
Given the way super accounts function, $100 deposited in your super account when you’re 24 can generate exponentially more by the time you’re 64. So you should make sure the money that’s going in there right now isn’t eaten up in fees or lost altogether.
Common super traps for young players
There are two issues that commonly come up when people move from job to job whilst accumulating multiple super accounts along the way. Firstly, you can lose track of the super contributions you’ve made, as shown by the fact there are currently six million ‘lost’ super accounts in Australia with just under a total of $16.8 billion spread between them*. Secondly, having multiple accounts means paying multiple sets of fees. Given that super funds can provide options that diversify money into a range of different investments, there’s no upside to paying five or ten sets of fees when you could be paying one.
Let us sort out your super for you
Faced with a desk drawer full of statements from different super funds, many people baulk at the time and effort they think will be involved in consolidating their super. Some don’t even know where there super is to even start the process. But what if your super fund tracked down all your accounts and let you know where they were?
If you’ve provided your Tax File Number (TFN) on your Essential Super account, we’ll search for your other super and make it really simple to bring it all together.
If you haven’t added your TFN to your Essential Super account already, you can do it anytime in NetBank. With this one small step to sort out your super, you can really kick start your finances.
Colonial First State Investments Limited ABN 98 002 348 352, AFS License 232468 (Colonial First State) is the Trustee of Commonwealth Essential Super ABN 56 601 925 435 (Fund) and the issuer of interests in Essential Super which is a product of the Fund. This document may include general advice but does not take into account your individual objectives, financial situations or needs. A Product Disclosure Statement (PDS) for Essential Super is available from commbank.com.au/super or by calling 13 4074. You should read the PDS and assess whether the information is appropriate for you and consider talking to a financial adviser before making an investment decision. Colonial First State is a wholly owned subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124 (‘the Bank’).The Bank provides certain distribution and administrative services to the Trustee. The Bank and its subsidiaries do not guarantee the performance of Essential Super or the repayment of capital by Essential Super. An investment in Essential Super is via a superannuation trust and is therefore not an investment in, deposit with, or other liability of the Bank or its subsidiaries. An investment in Essential Super is subject to risk, loss of income and capital invested.