ASFA CEO Mary Delahunty said the end of the year is a busy time, but an individual investing as little as one hour to make sure they are on track to achieve their standard of living retirement can reap dividends.
“It’s one of best New Year’s resolutions you can make,” Delahunty said.
“This can be as simple as going over your latest statement, thinking about your risk appetite and whether it aligns with your current investments, and considering seeking financial advice from an expert.”
She added that while engaging with superannuation can seem daunting to many, there are simple steps to take that can help.
A good first step is for trustees to access their superannuation account online, taking note of what they currently have and understanding what balance they may need to retire.
She said it is also important for trustees to make sure their contact details are up to date and that they have nominated a beneficiary.
“Don’t forget to check you’re in the right investment option for you and that your insurance cover reflects your needs,” she said.
“And monitor your account regularly to make sure you’re not missing any super payments you’re entitled to. The introduction of Payday Super from July 2025 will make it easier for you to see contributions in real-time and pick up on any missed payments.”
She continued that members can also log into their MyGov account to check whether they have accumulated any unwanted superannuation accounts.
“With a few clicks you can consolidate any unwanted super account into the account you use and want,” she said.
Another thing to consider is contributions, and Delahunty reminded members they can have a total of $30,000 in tax-deductible contributions including any employer contributions to their super fund this year.
“So, if you’re not going to hit that ceiling through your employer’s contributions, consider topping it up yourself and then claim a tax deduction in your next tax return,” she said.
“Accessing quality, affordable advice through your super fund can make a huge difference. Most super funds provide general advice or limited financial advice at no or only a small cost on topics such as insurance cover, investment options or whether to make additional contributions. Funds also generally have calculators that can assist members with planning for retirement.”
Furthermore, Delahunty said funds also make full personal financial advice to members, but this comes at an additional charge.
“Recent research commissioned by ASFA into Australians’ expectations of retirement highlighted the need for quality financial advice to be more accessible and affordable,” she said.
The survey of 1,500 Australian adults found that 30 per cent of respondents felt they would need between $500,000 and $1 million in superannuation to retire comfortably. Around the same proportion said they would need between $1 million to $2 million.
“This is well over the amount recommended by ASFA’s Retirement Standard, which suggests singles will need $595,000 at the time they finish work to fund a comfortable retirement, and couples will need $690,000,” Delahunty said.
“The research also found only half the people surveyed had sought professional advice to plan their retirement. It’s clear from our research that many Australians are overestimating the amount of money they need to comfortably retire, while some are underestimating it.”
