Superannuation Investment: Which Option is the Best for You?

Retirement is a time that most want to live comfortably after years of working hard. However, it’s important to consider planning ahead for your retirement and ensuring you are able to understand what superannuation investment strategies you can use to help you achieve your retirement goals.

Superannuation as an Investment

Your superannuation account is a great investment tool to take advantage of while you are saving for your ideal retirement. 

There are so many benefits, but here are just a few that may be worthwhile for your financial situation:

  1. It can reduce your tax (you can pay less income tax)
  2. Guaranteed additional contributions from your employer
  3. Ability to choose how your super is invested
  4. Option to purchase insurance cover with your super

It is important to make the most of your super as you are planning ahead for your retirement. It’s a great way to save for your retirement and can help you achieve your personal objectives for your retired years.

You can seek a retirement planner to help tailor financial strategies to your personal circumstance and ensure you are on the right track to achieving your dream retirement.

Check out this article to learn more: Retirement Planning Made Easy Through Financial Planning

During your working years, your employer must contribute 10% (as of June 2022) of your salary income to your superannuation fund, known as the super guarantee. You also have the opportunity to make extra contributions to your super, which can make a big difference to the growth of your nest egg. 

When you, or your employer, puts money into your super, it gets invested on your behalf with the aim of growing your super balance over time.

If you want to make the most of your money, you may want to put the time into choosing which superannuation investment opportunity is best for you and your investment objective.

Here are some options you can choose from:

Superannuation Investment Options

It’s important to know that you can choose how you would like your super invested to ensure it aligns with your values and goals. 

One of the best ways to invest in your retirement savings is to choose the investment option that aligns with your timeframe and risk tolerance. 

  • Growth Investment Option: Entails higher risk and higher growth in the long-term.
  • Balanced Investment Option: Includes a mix of low risk and high risk investment choices to offer reasonable returns in the medium to long-term.
  • Conservative Investment Option: This is a low risk and low return investment decision.
  • Ethical Investments: Many investors are concerned about investing to contribute to a brighter future for our planet and society. 

How Do I Change My Superannuation Investment Option?

Before you decide how you would like your savings invested through your super, you should check which investment options are available to you through your super fund. 

You can find out about your fund’s investment options by checking its website or product disclosure statement (PDS). Most super funds allow you to choose or change your investment choice online.  

However, it may be worth talking to a financial adviser to gain some further details on fees, performance and how a change in investment type will affect your superannuation savings.

What Type Of Investor Are You?

When deciding how you would like your money invested, it may help by asking yourself the following:

  1. How long until you would like to retire?
  2. How hands-on do you want to be when managing your super?
  3. How much investment risk are you comfortable with?
  4. Do you want more control over your super investments?

What Is Your Investment Timeframe?

Your investment timeframe, in this case, is depicted by how many years you plan to invest your super savings before you retire. Another factor is how long you would like your savings to last for your retirement. 

If you are unsure when you will retire, your investment time frame is still important to think about as it can help you choose the investment approach that meets your goals and risk profile.

For example:

  • If you plan to retire in the next 15-20 years, you may want to consider investing in a high-risk portfolio that can offer higher returns. 
  • If you are planning to retire in the next 5-10 years, then you may be better suited to invest your savings in a lower-risk portfolio that offers steady returns.

Retirement Planning Made Easier with Personal Financial Advice From Prominent Financial Services

When it comes to financial planning for retirement, it pays to start early and seek assistance from a reputable financial adviser. Prominent Financial Services is here to fill that role. We make sure you’re making the most out of your retirement investments so you can secure financial freedom for your future.

Book a free discovery meeting with one of our advisers today!

Share This

Related Posts