There are plenty of ways your super can work for you ahead of retirement – securing your first home, for one. Photo: Michelle Kroll.
Did you know that every working Australian technically has a personal investment portfolio?
At its core, superannuation is a long-term investment designed to grow over time. But unless they’re switching super funds or starting a new job, most people don’t actively manage their super.
As chief customer officer at Commonwealth Super, Adam Nettheim says this is a shame, because simply choosing where your investment goes could see you far wealthier once retirement rolls around.
“Making just a few informed decisions over the course of your working life can have a real impact on long-term finances,” he says.
“Something as simple as switching to a more aggressive investment option early on in your career could generate thousands of dollars more for your retirement.
“Take on more risk while you can afford to do so and the rewards can be significant, even when making extra contributions isn’t possible.”
Rather than adopting a set-and-forget approach, consider checking in with your super at key life events.
Buying your first house? You could save up to $7000 on your deposit through the First Home Super Saver Scheme.
Kids on the way? From 1 July 2025, the ATO will administer superannuation contributions for any government-funded parental leave.
Once in your mid-30s to 40s, it’s time to start thinking about protecting your wealth and those you love by activating life insurance as part of your super.
Your super fund should detail three primary coverage points: income protection, total and permanent disablement cover and death cover. You can opt in or out of life insurance depending on your needs and premiums are deducted from your super balance.
In the years leading up to retirement, Adam advises most people to switch their investment option once again, to reduce risk and safeguard wealth.
“They’ll want something stable that won’t fluctuate too much if the market changes,” he says.
“It’s also a good time to plan how you’ll manage your income once you retire, particularly if you will have multiple income streams to consider.”
Adam says reaching out to your super fund for guidance shouldn’t feel intimidating. Photo: Commonwealth Super.
Commonwealth Super added a new role to its ranks in 2023 called a superannuation specialist, to help people manage their super no matter what life stage they’re in.
In essence, these specialists break down the technical jargon and provide general advice about what clients can do with their super.
“Most people only retire once and it can be a confusing time,” Adam says.
“Our super specialists aim to demystify the process, helping customers feel more confident and make more informed decisions based on their current situation.”
This approach is another factor of success for Commonwealth Super, whose customers enjoy their retirement with an average of 20 per cent greater wealth than the AFSA comfortable retirement standard.
While money will no doubt be on people’s minds when retirement finally approaches, Adam says it’s just as important to think about the health and wellbeing aspects.
“Having enough money to live comfortably is one thing. Knowing how you plan to live a purposeful and fulfilled life after work is another,” he says.
“We run a number of free webinars and seminars around planning for life after work, covering things like hobbies, health, community and social connections.
“Understanding your super is part of it, but we also aim to improve people’s financial confidence across the board.”
The Commonwealth Superannuation Corporation is open to current and most former Australian Government employees and members of the Australian Defence Force. For more information, visit Commonwealth Super.
