Chris Sozou, Virgin Money Australia’s General Manager Wealth & Insurance, outlines some of the lifestyle factors that influence the way you could be investing in super during your 30’s.
- Higher paying jobs
- Growing a family
- Planning to buy your own home
Read the full transcript: Investing in Super through your 30’s
“With our 30s often comes a higher-paid job, a growing family and plans to buy our own home. However, Aussie couples with kids under five are likely to spend nearly $1,500 per week on bills, living essentials and basic recreation.
As you balance the household finances, this may mean that saving for retirement is not on your immediate radar. However, by maintaining an eye on the retirement prize, small actions today can mean a lot in the future. For example, by forgoing a $3.5 cup of coffee each day at work and contribution that money to Super could mean that you have approximately $70,000 extra for your retirement years. When making additional contributions to your super, be sure to also maximize any government entitlements such as the Government Co-Contributions scheme if you are eligible.
Making additional contributions will help your balance grow, but it is equally important to make sure your super is invested appropriately. When you are in your 30s, you can afford to allocate a greater portion of your retirement assets for Growth. This will increase your potential for greater returns, however, it does come at a greater risk of loss. As you are still young, there should be plenty of time to ride out the lows of the markets. For example, at Virgin Super, if you are invested in our LifeStage Tracker® Balanced option, we will allocate 85% of your balance towards growth assets such as such as Australian Shares and International Shares with the remainder invested in defensive assets such as Fixed Interest, Australian Listed Property and Cash.“