If you are reading this – then you were clearly interested in why the hell everyone is always telling you that superannuation is important. The TV ads asking if you have lost any super – during the footy? Where is your superannuation fund? Blah blah blah.
For most young Australians, the only time you really have anything to do with superannuation is when you change jobs. You have to complete a Super Choice form asking where you would like your super paid. Or when you see a TV ad with a person holding their hands in a strange square shape saying something about some Industry Fund.
Most of you would have thought to yourself at some stage: “Why should I care about superannuation?” – I am young and don’t need to worry about my retirement. Or yes, I know it’s important but I don’t yet need to pay attention, I have plenty of time.
So, if this sounds familiar, then here is a quick explanation of why you should care about your Superannuation.
Think about this: If you have ever quit your job, been out of work, or being injured and not being able to work for a period of time. You probably realised that without a job, you can’t earn a regular income, you cannot really do much when you have no money. You can’t go out to dinner a few times a week or afford to take that regular overseas holiday.
Now, this wouldn’t be a problem if you had money saved in the bank and you could live off your savings until you get better or found another job.
So fast forward a couple of years to when you are older and you have either stopped working full time because you decided to retire or you lost your job. For most people this is usually around age 60 – 65 years old and the avg life expectancy is approx. age 80, 85 or even 90 years old.
That is almost a further 35 years of living and spending with no income.
Think about how much money you spend each week at the moment. Now, think about how you would manage to do this for another 35 years with no income.
This is what superannuation is for. It is your savings for when you are no longer able to earn an income. So, the more you have in your savings account (superannuation) when you stop working, the more money you will have to enjoy yourself!
Do you still think that superannuation isn’t that important?
