How to manage super in your 40s

In your 40s your superannuation is likely one of your biggest assets, taking shape as an important source of funds for your life after work.

You are now in the decade where it’s important to make the most of your super. The four smart, easy actions below will guide you to review it thoroughly and make the improvements you need to.

Age 40 is the right time to reconsider the riskiness of your super investments. You want to find the right balance between preserving what you’ve gained and gaining more. As an example, our MySuper option nudges risk downward for those in their 40s, but not too much, so it’s still well exposed to growth assets to maximise possible gains.

“Whatever you’re invested in, take some time to review how your super is performing. Ask yourself if you’re happy with the level of risk and return? Will you achieve the best super balance you can?,” says smartMonday senior smartCoach Patrick Howard.

• Check out our range of investments and consider if some of them may suit you better.

• Consider what level of risk you’re prepared to take to achieve the returns you want.

What else can turbocharge your superannuation balance? Your contributions. Your 40s is arguably the most important decade to put extra into your super. You’re likely nearing the peak of your career earnings but have plenty of time to benefit from the returns of what goes into super now.

“Remember, you can contribute up to $27,500 at a low tax rate, compared to usual income tax rates. So there’s many advantages, and many ways, to contribute to your super to maximise your gains,” adds Howard.

Superannuation is an excellent vehicle to cover yourself and your family from the financial impact of death, disability and income loss.

Insurance is important in your 40s to cover the financial impact of death, loss of income, and total and permanent disability. It is a cost-effective way to protect your family from financial stress.

If you already have insurance it’s a good time to review if your cover is set at the right level and suited to your current circumstances. You can log in to your smartMonday homepage to check your cover.

If you don’t have insurance you can contact a smartCoach to discuss options and get a quote. They can also help update or change your existing cover.

Then we have important housekeeping matters you’ll want to check. You can do this tidying up and reorganising online, so you know your super is all set.

• Make sure you have online access to your super. Log in frequently to review your balance and other details. And make sure your contact information is up to date with your fund.

• How many super accounts do you have? Having one account makes it easier to track, reduces fees and grows your balance. For more detail, including impact on insurance, find out how much multiple accounts cost you. Then consolidate your super accounts online.

• Are you controlling who gets your super if you die? Set up a beneficiary (the person or people who will get it) by filling out a nomination form.

We know it’s not easy to think about retirement goals, but this is definitely a decade you want to plan for the long-term outcome you need from your super. Start by using our retirement account balance calculator. And then consider getting advice – it can be critical to help you make the most of your super.

“It’s not the easiest task to do on your own, so we have smartCoaches who can guide you through any superannuation issue you have (a service your fees already pay for). So please call and chat with one, or your financial adviser, to get more peace of mind about where you are headed,” says Howard.