'I met with a financial planner and here were my 6 biggest takeaways.'

If thinking about superannuation leaves you feeling overwhelmed, you’re not the only one. 

Whether you’re happy to be hands-on or prefer to let your super do its thing in the background, there are plenty of ways to boost your current funds and inch that much closer to your work-free era on a desert island – cocktail in hand. 

To help you along the way, I spoke with certified financial planner, Toby Perkins from NGS Super to get his best six takeaways for anyone (like me) looking to get super savvy, and super quickly.

1. Shift your mindset

Superannuation can be pretty overwhelming at times, especially when thinking about the various funds, fees and growth opportunities on offer. 

To make things as simple as possible, Perkins suggests framing superannuation in the most basic way: as a tax-effective savings vehicle that will provide an income for your retirement. 

"One of the good things, especially for younger people – is that you don’t have to have that much involvement with your super to have something growing and working for you," he explains. "As long as you're engaging with your super on some level, it's likely you'll be better off."

Perkins suggests simple but powerful acts including having a look at what you’ve already got in your fund, checking your insurance or making an investment decision early in the piece. 

"Many people don’t look at their super until it’s fairly late, but if you can get involved when you get that first job or that first contribution, that can make all the difference," he explains. "The earlier you start nurturing your super, the more likely you are to benefit long-term."

2. Talk to your partner 

It’s a sad fact that those who take time out of the workforce as a primary parent to raise children are often at a disadvantage when it comes to superannuation. "If you're in a couple, and one is taking time off work or spending some years part-time or on a reduced income, it's unfortunate that they’ll receive less super," explains Perkins. 

"This can be a big issue, especially for women, as things can happen later in life such as illness or separation." Thankfully, there are things you can do if you currently sit within this category. This might include making tax effective, voluntary contributions to your super, which gives you a government co-contribution. "You might contribute $1,000 and, depending on your eligibility, could get up to $500 as a co-contribution from the government," says Perkins. 

Alternatively, the partner with the higher taxable income can make a spouse contribution of up to $3,000 to the person with the lower income and receive a tax incentive this way, too. "This can give a meaningful boost to your super," adds Perkins. 

3. Get familiar with risk and reward

Almost all super funds give you choice around how your money is invested. Sometimes that means moving your money into high growth options in the hopes of better returns. 

"There’s a direct relationship between the amount of risk you take on and the returns you’re likely to get in the long-term," says Perkins. "As a generalisation, the longer you are from needing to access your money, the more capacity you have to take on that risk." 

So, if you’re in your twenties and you have your money invested in the share market but the market crashes – not all is lost, because it’s the end return you get when you retire that’s really important. "Even though this might be something people think about when they’re closer to retirement and have a bit more money in their funds, considering high growth options is probably more relevant for younger people," adds Perkins. "They’ve got so much longer to take on that risk and could benefit from the returns."

4. Check your insurance

Typically, most super funds take out insurance cover on your behalf, which you don’t always notice it from a cash flow point of view, because it’s paid for out of your superannuation account. 

"Generally, the cover within super might be a little less comprehensive but is probably cheaper than cover you could get outside of super," says Perkins. "Most will give you a fairly basic level of cover, but you can also apply for additional cover." 

This might include life insurance, income protection insurance or total and permanent disability insurance. 

"Another reason for having a basic level of engagement with your super is to see whether you have this default cover and to make sure you know exactly what you’ve got and whether you need it," explains Perkins. 

5. Nominate your beneficiary

Ever wondered what happens to your super if you unexpectedly pass away? The answer isn’t always as simple as it seems. 

"Your super has to be paid out to someone, but if you don’t have a binding death nomination in place, the fund is responsible for searching and finding potential beneficiaries," says Perkins. "They have to go through a long process to make sure no one comes back and challenges the distribution, and that can take a lot of time." 

If you have a binding death nomination however, your super and any life insurance will be paid out much quicker to your loved ones. "It takes away the uncertainty," adds Perkins. If you haven’t already nominated someone, simply pick your person (as long as they’re an eligible beneficiary) and complete the online form. "It’s a simple task but so important."

6. Make the most of free advice

Receiving the right guidance throughout your super journey can make all the difference. Can’t afford expert advice right now? No stress. There are plenty of free resources at your disposal. 

"Most superannuation funds will have different levels of assistance — for example, NGS has Super specialists who can chat to you at no cost," explains Perkins. "Their role is to educate you around these issues, and for someone who doesn’t want to have too much involvement or spend money on advice, these sorts of services can help you make small decisions that might have a big impact on your future."

While people often wait to seek out comprehensive advice till later in life, getting the right words of wisdom now could help set you on the right track. 

Book a complimentary chat with an NGS Super Specialist to help you better understand your superannuation, investments and insurance. 

The information provided is general information only and does not take into account your personal objectives, financial situation or needs. Before acting on this information or making an investment decision, you should consider your personal circumstances and read our Product Disclosure Statement and Target Market Determinations for more information. 

Feature Image: Getty.