Why you’re never too young to be super savvy
About the Series
The reality of frequent job changes, multiple careers and numerous employers over your working life means it's smart to get your super sorted now, before you end up with multiple funds.
If you’re a typical Gen Y, you can expect to change jobs on average every three and a half years, be employed by over 17 different companies and enjoy five career changes over your working life1. Giving your super situation a health check today can mean bigger financial rewards over time and less hassle later in life.
Here are three simple steps you can take in NetBank to take control of your super now.
Step 1: Know where your super is going
Once you’re over 18 and earning over $450 a month, your employer will generally pay 9.5% of your earnings into super. Since it’s coming from the hard work you’re doing, make sure it’s being paid into a super fund of your choosing.
To notify your employer to pay your super into your Essential Super account, simply log on to NetBank, select your Essential Super account and click the ‘Notify your employer’ link. An email with a pre-completed Super Choice form will be sent straight to your employer. It’s that easy.
Step 2: Consolidate your super accounts
Chances are you’ve already worked in various part-time jobs and have multiple super accounts on the go, which means paying multiple fees and makes keeping track of your money a real challenge.
Not sure where your other super is? If you’ve provided your Tax File Number (TFN) on your Essential Super account, we can search for your super (including those lost accounts) and help you bring it together easily. If you haven’t provided your TFN, you can do it any time in NetBank through the ‘Manage my accounts’ tab.
Step 3: Do a balance check
When you’re in your early 20s it’s hard to know how much super you’ll need to be comfortable in the future, especially since it’s so far away. But it’s always good to know how you’re doing. You can easily check your Essential Super account balance by logging on to NetBank any time.
To put things into perspective, the national average super balance for someone aged between 20-24 is approximately $4,9813. This may not sound like much now, but when you consider how super accounts work (much like savings accounts), the contributions (such as the ones from your employer) made while you’re in your 20s may grow significantly by the time you’re old enough to need it.
Take the example of Jess, a 24 year old café worker, who has worked various part-time jobs since she was 19. She has sorted out her finances early and always takes her super from job to job by notifying her employer of her existing account. Her current Essential Super balance is $5204, which is just above the national average. By keeping her super in one place she can easily manage it and avoid paying multiple fees which may affect her balance, setting herself up for future gains.
Now is the time to get your super on track and have one less thing to worry about.
1The McCrindle Blog – Gen Y at Work – Rewarding the Global Generation, 30 July 2013
3 ASFA – 2011-2012 figures taken from ASFA’s An update in the level and distribution of retirement savings
Things to know before you Can: 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.