How Much Extra Should You Add To Your Superannuation Fund?
29 October 2008
It has generally been accepted that the superannuation fund of the average person will not be able to fund their retirement using the 9% compulsory contribution made by employers. This is why it is important to use tools such as superannuation calculators in order to work out the necessary extra payments that must be made to your superannuation fund to comfortably fund your retirement.
While choosing the right types of superannuation funds to keep your fees low is important, you will find that the sheer weight of extra cash added to your superannuation fund can make a significant difference to the comfort of your retirement. It is important to choose the best times to add more money, however. You may not be thinking much about your superannuation fund if you are at the start of your career, but money added early on will have the longest time to increase in value. Money added later in your career will still be necessary - it is just unlikely to be as effective per dollar as money added to your superannuation fund earlier.
Superannuation fund plans must be reviewed frequently, as fluctuations in superannuation fund returns will have a massive impact on the money you need to add to reach your retirement goal. Changes in fees must also be kept track of, as percentage based fees will often change once your account balance reaches a certain amount. An industry superannuation fund can be good value while your balance is lower, but once you have more money saved you may wish to consider self managed superannuation funds like ESUPERFUND that charge a flat fee rather than a percentage of your total superannuation fund account balance.
Please click on our ESUPERFUND sponsor banner if you are interested in starting a self managed superannuation fund.
