Major life events like getting married, starting a family, or buying a property will all have an impact on your finances. They are also great times to review your super and make sure it’s performing the way you want it to be. After all, you’re probably paying into your super for over 40 years and relying on it for support in retirement for more than 20. Therefore, the decisions you make throughout your working life can ultimately make a big difference to your final balance.
Getting Married or Entering into a De Facto Relationship
When you tie the knot or enter into a de facto relationship with someone, it’s always important to update your super fund with the new information about you and your partner. Spousal contribution may be an option if your partner takes a break from work for a period of time.
Starting a Family
If you plan on having children, then now is the time to review how much money will be allocated towards them each week. Having children often means that there will be less money available within the household budget each month and therefore less money going into super contributions each year as well. If that's the case, then there are other ways you can save for retirement such as salary sacrificing extra funds into superannuation or setting up an investment portfolio outside of super.
Changing jobs doesn't just come with changes in salary –– it also brings many changes in staff benefits including changes in employer contributions into superannuation funds! It's important to review these contributions when switching employers so that they match what was previously offered by your previous employer (or better!). Doing this will ensure that no retirement savings fall through cracks while navigating between job roles.
Every major life event has potential impacts on our finances and our future retirement plans –– from tying the knot or starting a family or changing jobs. It's always important to take stock of these situations and review your current financial situation including superannuation fund performance and fees and if necessary make the switch, as these decisions could ultimately make a big difference when it comes time to retire.