Dear Aunt Sue,
I am 53 years old, I have hardly any super. Why didn’t they teach me all those years ago that I had to save for my own retirement?
Gabby, Nth Ringwood
Dear Gabby,
You are not alone. There are many people facing that same situation. For many of us, our superannuation only came about as a result of the introduction of the compulsory Superannuation Guarantee system (ie compulsory super or SGC) which was introduced in 1992. Needless to say, for some of us who were working way before the compulsory superannuation contributions were introduced, we had no idea there was even such a thing as superannuation. You should not despair though, it is never too late to look at your situation and to decide what you’re able to do to improve It. A lot of people think that superannuation is such a scary investment – what they don’t realise is that superannuation is not “an investment” rather it is an investment vehicle.
To put it very simply you can invest in many of the same investments in a “superannuation investment vehicle” as you would in your own personal name. It is just that in super there are rules and regulations about how those investments are treated which you need to explore and understand. And for most people super will be taxed at a lower rate than a similar investment outside super.
The ASIC (Australian Securities and Investments Commission) website have a great section on superannuation which explains very clearly some of the aspects of superannuation that you may not be aware of – It is well worth a read – https://www.moneysmart.gov.au/superannuation-and-retirement. So Gabby although you have not had the benefit of being in super as long as someone starting work now, it is not too late. By taking some time to learn more it will help you to gain confidence through better understanding. And don’t believe everyone who tells you that super is so complicated that it is too hard to learn. I think with the right person explaining it you will be well on your way. Then you will be able to begin to make decisions about your financial future.
So until next time girls and boys, keep those questions coming in by visiting our website https://www.moneynatters.com.au and using the “contact us” tab.
And finally “Why is money called dough? Because we all knead it!”
Have fun and keep smiling – Aunt Sue
