Superannuation explained

Superannuation explained

Louis: Australians born in 1995 should currently have this much in superannuation to retire comfortably. Oh, wait. Oh my god, that's me. How do I even check how much super I have? Also, what is it all about?

Louis Voiceover: ANZ presents: Superannuation explained. It's okay. I didn't know either.

Louis: Liana! The way that I was mid spiral and you just appeared out of nowhere.

Liana: It's magic.

Louis: It's your special talent, isn’t it? Okay. Actually, while you’re here can you please help me upskill in superannuation? First question. What's the deal?

Liana: Well, superannuation is how you ensure a comfy lifestyle in retirement.

Louis: Comfy? I see what you did there. Your mind is powerful.

Liana: So super is where your employer pays a minimum of ten and a half per cent into an investment fund throughout your working life. And it's the law. If you're a freelancer or self-employed, you may need to pop that money in yourself. And that amount is actually going to go up to 12% by 2025.

Louis: Backtrack a bit. All I heard was the fact that I'm an investor. Am I investing?

Liana: Yeah. Yeah. So you're investing in your own retirement.

Louis: But how do I make sure that I've got enough super for, you know, the lavish lifestyle that I so desperately deserve?

Liana: Such a good question Louis. You’re definitely not alone in wondering that. So there are four Cs that I hope can help you out. Connect.

Louis: Connect.

Liana: Consolidate.

Louis: Consolidate.

Liana: Contribute.

Louis: Contribute.

Liana: And consider.

Louis: Consider. Okay.

Liana: So the first: connect with your super fund by jumping online, logging into your fund, even calling them directly and finding out how your super is performing, what your balance is, how it's invested. You've got to know what you're working with if you want to grow it. Number two do you remember number two? Consolidate?

Louis: Yes. I was just going to say consolidate. I was like consuhhh- And you took the words right out of my mouth. Yeah.

Liana: So if you've changed jobs a couple of times, you might have two or three super funds floating about. Consolidating them could make them grow more over time because you could be saving in fees. It's really easy to do via the ATO and they'll send you a list of any linked accounts that you have.

Louis: So like less fees so that retired me can you know, enjoy a couple of cocktails on a cruise from time to time got it! Old me will still have it.

Liana: Yes. What's your cocktail of choice?

Louis: Margarita.

Liana: Oh, same!

Louis: I knew we were one! The synchronicity.

Liana: So number three, contribute extra. The more you put in early, the more it will grow and the more you will have at retirement to provide you with that lifestyle. So if you have extra cash you don't need, you could put more into a super fund instead of a savings account. Remember, cocktails.

Louis: Cocktails on the beach? Yeah.

Liana: So you can earn more interest. Your funds will grow more over time if you put more into the fund. Plus, those extra contributions could be tax deductible to you. Just make sure you do your research.

Louis: And the fourth C?

Liana: Consider your options. Ultimately, this is your investment, so it's important to know where it's going. There are lots of different super funds out there with different fees, different investment options, different insurance, different ethics. There are a lot of different factors to consider when picking a super fund, so make sure you do your research and pick what's right for you.

Louis: This has been so helpful and I'm not spiralling anymore but where can one go if they don't have ANZ expert Liana Cauchi sitting beside them on a reclining couch, you know.

Liana: Well I'd jump back to the first C. Do you remember what that was?

Louis: Back to the beginning. Yeah, so… Next question?

Liana: So connect

Louis: Connect. Connect!

Liana: So jump online, log into your super fund, even call them and just ask them a few questions over the phone. You could also go to ANZ.com/superlearning to access some great content to help you on this journey and make the most of your super at any age. It's really straightforward once you get started.

Louis: Some might say super straightforward. If you found this video helpful, go on. Subscribe to our channel. I need you. I'm lonely. And watch me as I upskill in a whole lot of other financial wellbeing topics. Oh, and don't forget to check the links in the description for some more handy resources. Shall we get comfy?

Liana: Sure. Okay.

Louis: Oh my god, this goes all the way back. Oh, I'm floating on a cloud. Oh, I'm floating on a cloud! Sleep in 3, 2, 1.

Liana: Glad I was that interesting.