Super – the concept not the product

By Tim Miller
(Miller Super Solutions)


Superannuation was never a great conversation starter but at some point we need to start that conversation with others to get them genuinely interested in the idea that retirement is not something at the end of your life, but rather it could represent a quarter of your life and you have a choice how to spend it.

Most of us struggle with the idea of putting money away for a rainy day if that day is 30 or so years away so perhaps we need to look at our strategy of discussing superannuation with younger workers to try and get them to appreciate that the Age Pension is not a lifestyle choice but a means to and end whereas superannuation is a lifestyle choice.  It’s never going to be an easy discussion and we probably need to repeat it over and over again as it may not get through to start with but every small amount counts and most people’s bucket lists don’t come cheaply.

The problem as I see it with superannuation is that the marketing of it tends to focus on fees and why this product is better than that product rather than highlighting the differences between living on the Government funded Age Pension versus having additional superannuation savings, in most cases in addition to the pension to help tick off those retirement objectives.  I have noticed more commercials about superannuation and not all of them are comparing the pair but there needs to be a better way to engage with those that are not already financially savvy as they enter the workforce.  I know I was the perfect example of get it, spend it and probably still am but I also know that my superannuation balance would be a lot healthier if someone had sat down and identified to me what the benefit of saving for retirement was and that is lifestyle choices.  Superannuation isn’t the be all and end all and there are other ways to save for retirement but we need to start the discussion at 20 not 50.  Particularly now that the end goal will be out of reach for so many people.


General advice warning:

This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.

Miller Super Solutions is the SMSF education & training creation of Tim Miller, assisting SMSF professionals and trustees with the practices associated with establishing, running and ultimately closing down SMSF’s.

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