How To Manage Your Super In Your 40s

In the third instalment of our Making Your Super, Super series, we reveal how women in their 40s can maximise their super. To make it, well, super.

By Rosemarie Lentini

Superannuation

In the third instalment of our Making Your Super, Super series, we reveal how women in their 40s can maximise their super. To make it, well, super.

By Rosemarie Lentini

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Ignore the panic merchants. It’s not too late to turn your super around in your forties and fifties. At this point, you may have paid down some debt and even squirrelled away savings. That extra cash flow can go a long way if invested strategically: you just need a plan. According to the Association of Super Funds of Australia, women aged 40-44 have an average super balance of $61,922, while women aged 60-64 retire on $157,049. With three children, Catherine, 44, and her husband hope to retire with more than that (and ideally on the Greek islands). They save $500 a month on top of paying off their two-storey Sydney home and contributing to a multi-asset super portfolio. “I’m really interested in knowing how to reduce risk in my super investments while maintaining steady growth,” says part-time journalist Catherine. She has a few options. Let’s take a look.

Do you have a retirement goal and are you on track to reach it? “Your forties and fifties are a great opportunity to really start thinking about super as part of your retirement,” says Dixon Advisory director Ishara Rupasinghe. “This is the time to work out how to maximise your super contributions and think about what is tax effective.” Look closely at your current super set up to see if it is bringing in the goods. With clever planning, you can gradually cut back your work hours and begin sipping martinis… errr… accessing your nest egg between 55 and 60 under transition to retirement rules.

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Name: CatherineJob: Part-time journalistAge: 42Family status: Married, three childrenLocation: SydneySalary: $100,000 pro rataWeekly net pay: $900Mortgage: $3000Insurance: About $3000 for health, home and carsHousehold bills: $1000/monthGym: $100/monthBeauty: $300/monthMobile phone: $400/monthGoing out: $500/monthSavings: $500/month put asideInvestments: Three-bedroom homeWhat type of superannuation account do you have and what is the investment mix? Multi-asset portfoliosAre you thinking about your financial future and your super? “Yes, I would like to be able to use my super to invest in bricks and mortar investments.”Have you had any professional financial advice? “Yes.”What do you most want to know about your superannuation? “I would be interested in knowing how to reduce risk in my super investments while maintaining steady growth.”

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Making Your Super, Super is a series helping women of all ages gain confidence and knowledge around their superannuation and financial future.

This report contains general advice. It does not take account of your individual objectives, financial situation or needs. You should consider talking to a financial planner before making a financial decision.

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