How to manage super in your 20s

Your working life takes off in your 20s as your career gets underway. And your super develops right alongside. But like any valuable asset, it needs some of your attention to be at its best.

So how do you start to manage it right? Take the four smart, easy actions below to make a strong start to your super journey.

“People commonly start paying attention to their super later in life when they realise what a valuable asset it is. This lack of attention often means it’s not in the best shape it could be by then. Don’t be like that,” says smartMonday senior smartCoach Patrick Howard.

A smart, easy first step is to get online access to your account. Then login at least every few months to review your balance and other details. And make sure your contact information is up to date. (Register your account with your personal email address, not your work one, so your fund can stay in touch with you when you change jobs.)

• Register for online account access

Put it in your calendar to log in to your super every three months, to check in and familiarise yourself with what's happening with your money.

As most Australians have some kind of employment in their teenage years, it’s very possible you already have more than one super account. These accounts likely come with fees that eat into your balance, eroding your super over time. They could also include insurance cover you are paying for if you’re aged over 24 (keep in mind you could lose that if you consolidate).

“There can be a big cost to multiple accounts, so consider consolidating them into a single account to more easily track your super, reduce fees and grow your balance. It’s perhaps the simplest step to take and will deliver over the long term,” explains Howard.

• Search for and consolidate your super online

Do you want to be actively involved in choosing what your super is invested in? If not, then MySuper could be your best choice. It is our default option designed to balance risk and return over the course of your working life.

“At this younger stage of life taking on more risk in your investments to achieve higher returns can be a winning strategy (which is how MySuper is designed),” explains Howard.

If you want to be more active, then you need to know what your super is invested in and the results it is producing. Be more purposeful in your investing by:

• logging into your account to know your current investments

• reviewing the investment performance of these options

• making any changes you want through your personal homepage.

“If you want to build your super, extra contributions are at their most valuable in your 20s, because they can compound over the decades ahead to boost your balance significantly,” says Howard.

While your 20s is usually not a time when you have spare money to put into your super, even adding a little extra could amount to significant gain in the long term, as it could have 40 or so years to reap returns.

• Extra contributions are also a tax effective way to save toward your first home.