Like new years’ resolutions, resolutions based around your finances are easier said than done.
Unlike New Years, there aren’t fireworks, parties and countdowns to get you excited about the endless possibilities that lie in store for the new financial year.
Perhaps that’s the problem?
So if the real New Years is too difficult a time to set some savings goals, then consider setting your super savvy sights on the financial new year to boost your retirement fund.
If you’re not already making contributions to your superannuation fund, then it’s never too late to start. Much like fitness and diet goals, it’s easier to start slow than continue to put it off.
People in the workforce will already be receiving contributions through the compulsory Superannuation Guarantee (SG) scheme that was introduced 20 years ago.
A recent study from Certified Practising Accountants (CPA) Australia has found that while the scheme has been beneficial to both the economy and household savers, it hasn’t actually provided the kind of nest egg required for current retirement standards.
The government’s SG scheme is a great start, but it’s unlikely it’ll provide enough to retire on. We all need to be taking our own steps to prepare for retirement. And it’s a good idea to start thinking about making additional payments towards that nest egg sooner rather than later.
Fortunately, making small superannuation contributions is a lot easier than committing to running a marathon in the New Year or shedding the extra Christmas weight by Easter.
Voluntary contributions (one-off or ad hoc) are worth considering if you’re not sure about the stability of your income and want to boost your nest egg.
If you’ve got a stable salary coming in however, making regular extra contributions could be the way to go – a bit like signing up for a gym membership. You decide how much extra you want to pay and simply let your employer know. If you have access to salary sacrificing your super contributions, an additional benefit of this option is that the payments come out of your gross pay, which means a small victory over the tax man.
Fattening up that superannuation piggy bank now is an achievable, realistic goal for the financial new year. And, if you tick that one off, you can feel less guilty about that gym membership that was forgotten back in March.