If you’re like a huge percentage of Australians who ignore their superannuation until it’s too late, it’s time to take control.

For a lot of Australians, superannuation needs to form a significant part of their retirement plans and if you fit into that category too, the good news is that there are some steps you can take to help make the most from your super for a more secure financial future.

 

1. Take more risks

Everybody’s threshold for risk is personal but unless you know what yours is by talking to your accountant and financial planner, how do you know what risks you might be able to take?

By choosing investment strategies that are a bit riskier, you can increase your savings dramatically – but make sure it is money you can afford to play with – and not your entire super fund!

Your age is a critical part of managing a sensible investment strategy that combines risk with security – the further away you are from retiring, the more time you have to recoup any losses that might be made in a risky investment.

And, the more risk you take, the higher the odds are of creating a higher return. But proceed with well-researched caution and talk to your financial planner to work out a strategy that works for you.

Playing it safe can be great for some but it will more likely lead to lower returns.

 

2. Don’t be loyal for life

Just because you’ve always been with a particular superannuation fund isn’t enough of a reason to keep sticking with them.

If the investment options you’ve chosen don’t deliver what you need them to, it’s time to change to something that serves you better.

Talk to your financial advisor before you decide – sometimes there are insurance benefits to superannuation loyalty that may be lost if you switch funds so it’s about weighing up all the pros and cons and balancing the best option for you and your situation.

 

3. Set up an SMSF

There is a cost involved in setting up an SMSF – but it can pay off brilliantly. Professional advice is recommended as it is a confusing area and fund trustees have many legal responsibilities. Your own personal circumstances might be ideal – but be sure to talk to your accountant before deciding.

 

4. Start young and save as much as possible

If you’re nearing that golden retirement stage of life, topping up your super in a major flurry probably won’t make much difference at this point but if you’re at the younger end of the age spectrum, it’s the best possible time to plan your future financial security.

The fact is that compounding interest really can be a golden goose and the earlier you start saving consistently, the more you will benefit in years to come. Consistency is key – even if the amount is relatively small.

 

The important lesson here?

By taking control of your superannuation, you are helping yourself create the best possible chance at a positive financially secure future. To help you increase your savings potential, look at your budget and find ways to save – anything from shopping for a better interest rate on your mortgage, to finding a better deal on your car insurance or personal loan. When it comes to saving, every little bit helps.

 

So, what are you waiting for?

If you need advice for a home loanbusiness or commercial loanself-managed super fund loan, or an investment home loan, speak to a broker at Lending Specialists. We have a wealth of experience under our belt and a robust network to connect you to the right industry professional for the loan you need.