Okay, we know super is boring. It’s ironic really. Its name suggests it could be super duper exciting, when really it’s dull and bleugh and gives us all the future-me-can-worry-about-that feels.
For many of us, the only time we really think about super is when we wish we could access it. Like seriously, can I just ~borrow~ $20 from my retirement savings for brunch or nah?
What’s really important, though, is that we start paying attention to our super as young as possible. For all the shit that our generation is faced with – the constant battle with technology, rising house prices, shitty wage growth, Brexit, the gender pay gap, violence against women, yknow, that stuff – one of the things that we get that no generation before has had, is compulsory superannuation in employment.
Whether you’re working 6 hours at Macca’s or smashing out 60 hour weeks at a law firm, your employer has to pay at least 9.5% of your salary into your superannuation fund.
Yep seriously. If you’re getting paid $21 an hour, for every hour you work, $2.10 is trotting off and hangin’ out for ya when you’re ready to retire.
For this reason, lots of young Australians actually have a pretty hefty superannuation balance by the time they hit their 20s – which makes it all the more important that we do something with it. Like now.
The first problem is that so many of us have multiple super accounts. When you get that aforementioned job at Macca’s, you’re probably too young to worry about a super account, so they set one up for you. When the final beef patty breaks the camels back and you can’t take it no more, you move onto another part time job. Let’s say that’s at a café. Again, you draw a blank when your employment contract asks for a super account, so once again, they set one up for you.
By the time you’re done studying at say age 22-25, you’ll probably have been working for anything up to 7 or 8 years – and chances are you’ve got a super account from every job you’ve had in that time.
“I’ll worry about that in the future” I hear you cry.
No no no. Don’t worry about it ever – just fix it now.
The thing with savings, whether in a savings account or a super account, is that they accumulate interest. The more you have in an account, the more interest you’ll accrue – and this compounds over time.
Drawing together your superfunds keeps all your money in one place, and allows you to move it all into one chosen account with the best benefits for you – while enjoying the best compounding interest. Once your funds are combined together, you can see more clearly whether you’re on track for retirement.
I know it sounds HIDEOUS to think about retirement in your 20s, but think about what kind of life you want to lead when you’re old. I personally want to be one of those sick ass grans who wears neckerchiefs and cardigans draped over my shoulders while I guzzle down fancy gin and slip my grandkids money for whatever they want.
But to get to #coolgran status, I need to make small changes early on. I chat here about how $20 a week can make a major difference to your retirement here, and this blog is packed with info on budgeting when you do reach retirement!
If you’ve got multiple super accounts, you can find them all by connecting your MyGov account to the ATO.
Go forth and be a Super Trouper!