When my super statement used to arrive in the mail, I’d pop it straight in the ‘file and forget about’ pile…or I’d end up writing the grocery list on the back of it.
As someone who likes to live in the now, I wasn’t particularly focused on my financial future. I left all the super stuff to my employer, stuck my head in the sand and enjoyed being what they call a “money ostrich”.
Then I hit my 30s, popped out a few kids and decided it was time to grow up and have the ‘S’ talk. But where to start?
If I’m trying to decide on a holiday destination, a school for my kids or the next TV series to binge watch, I ask the people closest to me for advice. It was no different with my super. I had some friends over for dinner and lamented my lack of interest in the “S” word with my closest mates. After our conversation I realised that I needed to get my head out of the sand, stand upright and take more control.
Once my friends left, I started thinking about different funds, how much I need to retire comfortably, and my strategy for bridging the rather mammoth estimated gap. Yes, it’s a big deal to think about.
I work part-time in a corporate job and part-time running my own business. My friends pointed out that because I don’t make any voluntary contributions from my small business earnings, I’m only accruing super from half my income. I decided to take on their suggestion and allocate a portion of my small business revenue into my super account.
I also started researching super funds with a track record for solid returns, as well as looking into current trends. Head out of the sand – so far, so good.
It turns out I’m not alone in avoiding the “S” word, and needed that little prompt from my inner circle to think more about it.
QSuper conducted a survey of just over 2000 Australians1 and found that informal superannuation advice from friends, family, colleagues, employers and social media now accounts for 40 percent of total superannuation advice. But wait for it – millennials are most likely to act on the guidance from mates and relatives, earning us the title of the ‘Recommendation Generation’.