Seven reasons to pay attention to your super now
Your super is your money and the decisions you make today can have a big impact on your financial future. Whether you’re starting your first job or getting ready to retire, it’s never too early – or too late – to pay attention to your super.
1. It’s compulsory
If you’re working for an employer, they’re generally required to pay contributions into a super fund on your behalf. This is known as the Superannuation Guarantee (SG). Make sure you’re aware of the SG rate (currently 11.5%)1 and make the money work for you – it is yours after all.
2. The snowball effect
The younger you are the more you may gain from regular contributions to your super – due to the 'snowball effect' of compounding returns. Any investment returns your super earns have the potential to earn even more returns and build your balance over many years.
3. You could live a long time
Many Australians can now expect to live well into their eighties.2 This means your super may need to last 20-30 years if it’s to provide an income right through your retirement. The earlier you start thinking about your super, the more comfortable you’re likely to be later in life.
4. It’s a valuable asset
Your super is a valuable asset that may become one of your largest financial resources once you’ve left the workforce. Today’s decisions can have a big impact on how much money you have, to support your lifestyle in years to come.
Even more benefits for Mercer Super members
Mercer Super members also have access to a range of support and advice services. This includes Care & Living with Mercer which offers ageing care support for you or a family member, as well as financial advice services at no additional cost.
5. It can be tax effective*
Your super is taxed differently to most other investments and savings. There are special tax concessions that apply to super contributions, which can save you money in the short-term and help you save even more for your future.
6. Access to insurance
Super enables access to different types of insurance, often without the need for medical checks. Mercer Super members also have access to several types of insurance. While the types of coverage differ, they all share a common goal of providing financial security for you and your loved ones if something ever happens to you.
7. Save toward your first home
You may be able to use your super to save for your first home. The First Home Super Saver Scheme allows eligible members to make additional contributions to their super and withdraw them later – along with any earnings – to help fund the purchase of their first home.
Don't hope for the best, plan for it with financial advice
As a Mercer Super member, you have access to limited financial advice at no additional cost.
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1 The current SG rate of 11.5% applies from 1 July 2024 and will increase to 12% from 1 July 2025.
2 Australian Bureau of Statistics (ABS)
Disclaimer: This content has been prepared on behalf of Mercer Superannuation (Australia) Limited ABN 79 004 717 533, Australian Financial Services Licence #235906, the trustee of the Mercer Super Trust (‘Mercer Super’) ABN 19 905 422 981. Any advice is of a general nature and does not take into account your objectives, financial situation or needs. Before acting on any advice, please consider the Product Disclosure Statement (including incorporated documents) and Financial Services Guide available at mercersuper.com.au. The product Target Market Determination can be found at mercersuper.com.au/tmd. The material contained in this document is based on information received in good faith from sources within the market and on our understanding of legislation which we believe to be accurate.
Care & Living with Mercer is a service provided by Mercer Consulting (Australia) Pty Ltd ABN 55 153 168 140. Please read Care & Living with Mercer website Terms of Use when accessing the service.
* Any information in this material regarding legal, accounting or tax outcomes does not constitute legal advice or an accounting or tax opinion and prior to relying and acting on this information it is important that you seek independent advice from a qualified lawyer or accountant regarding this information. Past performance is not a reliable indicator of future performance. 'MERCER' is a registered trademark of Mercer (Australia) Pty Ltd ABN 32 005 315 917.
Past performance is not a reliable indicator of future performance. 'MERCER' is a registered trademark of Mercer (Australia) Pty Ltd ABN 32 005 315 917.