From a purely academic perspective, achieving $1.6m in superannuation or something close to it, primarily depends on a range of factors including but not limited to contributions, earnings (net of fees) and the timeline to retirement.
The mistake many make is that they do not start taking action on their superannuation contributions or retirement planning until it is far too late. Don’t let this happen to you!
To benefit from what Albert Einstein referred to as the eighth wonder of the world (compound interest), there is a need to start saving as early as possible and with additional tax effective contributions earning solid and consistent long term net returns. You must definitely not make the mistake of starting too late with additional contributions or having poor net returns over the life of your investments.
The Australian Securities & Investment Commission (ASIC) publish a very useful calculator where you can play around with some scenarios associated with saving in superannuation for retirement and also funding a pension from your superannuation in retirement. The calculators will hopefully shock you and spur you into action!
While there are some who suggest the current 9.5% Superannuation Guarantee is enough, we strongly disagree. By simply relying on a handout from your employer as part of your total employment package you really are just setting yourself up for an underwhelming experience in retirement.
Retirement planning and superannuation are no different to many other important things in life: your personal contribution and efforts often determine in a very significant way the level of success. If you do not make a meaningful contribution to the important things in life the outcomes will often be disappointing.
HOT TIP: Seize the moment, take control and make sure you have a goal for your superannuation and retirement.
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Disclaimer: The information in this post is of a general nature only and has been provided without taking account of your objectives, financial situation or needs. No representation is given, warranty made or responsibility taken about the accuracy, timeliness or completeness of the information. Because of this, we recommend you consider, with the assistance of a financial adviser, whether the information is appropriate in light of your particular needs and circumstances.