If you have a million dollars lying in your Superannuation kitty, there is a good chance you have secured yourself a more-than-decent retirement. While this may not look easy to attain, it is very much possible. The clue lies in getting the basics of Super savings right.
Voluntary contribution
Compulsory 9.5% may not suffice. It is unlikely to be enough even when it is raised to 12% by the turn of the decade. You have to make extra voluntary contributions to your Super. You can take the Salary Sacrifice route wherein the contribution is deducted from your gross and not the net wages, allowing you to pay only 15% contribution tax.
Expert recommendation
Choose a fund that is renowned for providing great advice during retirement and not only during the accumulation phase. If needed, do not think twice in seeking recommendation of experts. They have gone through the grind well and it is likely that they can cushion you with some stratagem here or there.
Review target
Keep reviewing your target and ensure that everything is in place. For instance, if the employer contributions are arriving in time, if the salary sacrifice arrangement is going just as you had planned, and if you are paying the least possible bucket of taxes.
Avoid getting divorced
Divorce can be a big worry for the cause of combined pension and in any way, it is not hard to fathom that two nest eggs are better than one.
Our Baby Boomer generation is about to run into their retirement years and surveys clearly suggest they are terribly short of what they may need. Let us not repeat the mistake. Let us be increasingly mindful of the task at hand when it comes to our retirement nest egg.
