What are some of the most important things you should know about your super?


Generation X is often accused of being fatalistic about superannuation.

Many believe it will be hoovered up by government taxes, crash before they receive it, or taken by frauds.

But they’re not acceptable excuses for taking a bad attitude to super. Most importantly, Xers need to understand that super is our money, we just can’t touch it yet.

Treat it with respect. Do so and its far more likely to grow into a pile of dough worth getting excited about.

Firstly, get your super invested right. Do a risk profile to find out what sort of investor you are. Then invest more aggressively than that, by getting more in shares and property. You can’t touch your super until you’re at least 60 – an ultra-long investment time frame for all Xers.

Second, protect your family and yourself. Get your life and total and permanent disability insurance inside your super fund, where it’s a tax deduction to your fund.

Third, once you’ve got your insurance in order, consolidate your funds. The trickiness of insurance might mean that you need to keep two super funds.

Xers also need to start salary sacrificing. Previous generations could shovel money into super when in their 50s. But we face heavy restrictions on contributions. Start salary sacrificing, even a few thousand dollars a year, from your late 30s.

Xers are now at the age where their super is beginning to look like something, after a couple of decades in the workforce. But we’ll be working a lot longer yet. So concentrate on investing and contributing right.

Bruce Brammall is the principal adviser with Bruce Brammall Financial (www.brucebrammall.com.au) and author of Mortgages Made Easy.


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