MLC’s Dave Woodwall recently spoke to News.com.au about how simple tweaks - like adding just a little extra to your super fund, or to reviewing your investment mix - can make a real difference to your retirement savings.
 

Key Takeaways from the Article:

• Small, regular contributions add up over time thanks to compounding.
• Reviewing your super strategy regularly can help you stay on track.
• “Strategic asset allocation, or what fund you are in, is the number one driver of outcome in retirement, or how much money you will have in retirement,” says Dave Woodall. This means that beyond how much you contribute, where your money is invested plays a critical role in shaping your retirement outcome. Choosing the right super fund, and option within that fund, and regularly reviewing your asset allocation can help ensure your super is working as hard as you are.

Our Perspective:

At MLC, we believe everyone deserves a glorious retirement. Here’s how you can start making small changes today:

• Grow your super with extra contributions: It's not always easy to find extra cash to grow your super. But if you can manage it, contributing more than the minimum can pay off big time. Salary sacrificing can help you contribute more while enjoying tax benefits. Alternatively, you can make after-tax contributions to top up your super. Just remember to stay within the Australian Taxation Office’s (ATO) contribution caps to avoid penalties. Find out more about concessional (pre-tax) contributions and non-concessional (after-tax) contributions.
• Choose the right investment option for your super: Your super isn’t just savings sitting in an account – it’s invested in assets like shares, bonds, and property. Most super funds offer options from conservative to high growth. If you’re young, a growth option with a higher exposure to growth assets like shares could offer higher returns over time – but it also comes with higher risk. As retirement nears, you might want to consider a more conservative approach with more defensive assets, like bonds for example, to protect your savings. Find the balance that works for you!
• Start early to grow your super: Growing your super isn't a get-rich-quick scheme; it's a long game, and there will be ups and downs along the way. The earlier you start contributing, the more time your savings have to grow. Even small, regular contributions add up over time. If you're in your 20s or 30s, don't wait! Start today, and you'll thank yourself later.

Read the full article here

Let’s get in touch

Getting expert help is all part of being with MLC. As a service to our members, our team of Financial Coaches provide general advice related to your super, at no additional cost.

If you are a member with us, book your appointment with a Financial Coach today.