11 Young Aussies Share What They Wish They Knew About Super Sooner

Here's to early retirement, friends.

Australian superannuation laws can be tricky to wrap your head around. With so many changes to rules, funds to choose from and a sense that it's all so remote and intangible, it's no wonder we often feel a little...disengaged, shall we say?

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But, believe it or not, super is something to get excited about. And something we could all do with knowing a bit more about, too.

The better our understanding of super, after all, the more control we have of our finances — and ultimately, our future.

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Which many of us have some pretty cool plans for, right?

So to ensure we're not kicking ourselves when we retire, we've collated some of the best tips from young Aussies who have learnt their lessons about super the hard way!

(Appreciate the hindsight, fam.)

1. Is your employer's default fund right for you?

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"I wish I'd taken time to look into my super before the new 'super stapling' rule came in — in a way, it was a bit of a blessing! When I realised I would be 'stapled' to my current fund until retirement, I did some research and compared it with other super [funds]. Turns out, the one [super fund] I'd defaulted to through work wasn't the best option for me. 

I eventually landed on Spaceship Super which has high-growth, future-focused investment options and feels totally up my street."

— Stuart, age 24.

2. Consolidating super can be a way to save money.

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"I didn't realise I was paying fees and multiple insurance [premiums] on all three super accounts I had! That was so annoying to find out. I was also wasting time managing them all individually. If only I'd consolidated them a lot earlier — but I guess you live and learn!"

— Michelle, age 23.

Before you consolidate your super into one account, you should consider how rolling over your existing super funds might impact you. Also, think about where your future employer contributions will be paid.

3. Even minor differences between super funds can have a big, big impact.

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"I regret not doing a few simple sums when comparing super [funds]. Like, even a 1% difference in annual return can equate to thousands of dollars over the 40-odd years of your working life. It's not all about the returns, but paying attention to those small details is important when choosing a [super] fund."

— Ryan, age 25.

​​Past performance isn’t a reliable indicator or guarantee of future performance.

4. Check in on your super.

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"I didn't take an interest in my super [account] for years, but then my girlfriend was all over hers and knew exactly how it was performing. Hearing her talk about it and then proactively switch to a higher-growth [super] fund was quite inspiring...and a bit of a turn-on too, if I'm honest!"

— Jake, age 21.

5. Consider what your super fund invests in.

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"I wish I'd been able to see what my super was being invested in, earlier on. It would have affected my decision on who [super fund] to go with. 

One thing I love about Spaceship [Super] is they give you 24/7 access to how and where your super is invested. It's definitely reassuring to know my investments align with my ethics and views on the world."

— Daisy, age 26.

6. Be sure to understand the correct way to roll your super fund over to a new fund before you do so.

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"My failure to notify my current [super] fund of my intention to claim a tax deduction on contributions before I changed over to a new one meant I lost quite a bit of money. I didn't know that when the balance is transferred over, it's locked in as non-concessional, which can later cost thousands in extra tax. All it required was filling out a simple form. Duh!"

— Ruth, age 27.

7. Think about salary sacrificing early in your working life.

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"I think a lot of people my age just pay the minimum [super] contribution from their salary, but of course it's well worth putting across even a tiny bit more. Every extra dollar you add is multiplied when you take into account compounding returns and the tax advantages that super gets."

— Gareth, age 26.

Just so you know, there are caps on the before-tax (also known as concessional) contributions you can make each financial year. For more information on this, you should visit the Australian Tax Office’s website. 

8. When it comes to super investments, high growth super options might be a longer-term win for younger people.

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"I discovered that higher growth super options can be quite volatile in the short term, which is quite normal and not necessarily a cause for alarm. Sometimes you just need to ride out the lows, which you can do while you're young."

— Alison, age 25. 

9. Understand the tax benefits of making voluntary super contributions.

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"I wish I'd made more after-tax contributions, which I now know can really boost your super balance. Especially since you can claim a deduction for these contributions on your tax return! I also found out the earlier you pay them in the financial year, the better, as they accrue more interest."

— Margot, age 25.

Just so you know, there are caps on the after-tax (also known as non-concessional) contributions you can make each financial year. For more information on this, you should visit the Australian Tax Office’s website.

10. Compare super funds before making a choice about what’s right for you.

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"I felt it was a lot of effort to switch super funds and put it off for ages because I didn't have time to do all the research. Then a friend pointed me to the YourSuper [ATO] comparison tool which makes it a lot easier to choose a [super] fund. You can even compare your existing [super] funds on a personalised version if you log in through MyGov:"

— Simon, age 22.

11. And finally, downloading an app to manage your super could help you keep on top of it.

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"I didn't know that some [super] funds allowed you to track and manage your investments through an app. Having the ability to tap into it any time I wanted really helped me get more interested in my balance and making extra [super] contributions."

— Steven, age 20.

Spaceship Super offers forward thinking investment options, which helps you live the life you want to live. It's also simple and easy to join — sign up for Spaceship Super in just five minutes today.

Spaceship Capital Limited (ABN 67 621 011 649, AFSL 501605) is the promoter of Spaceship Super. Spaceship Super is issued by Diversa Trustees Limited (ABN 49 006 421 638, RSEL L0000635) as trustee of the Tidswell Master Superannuation Plan (ABN 34 300 938 877) (Fund). Spaceship Super is a sub-plan of the Fund.

The information in this advertisement is general in nature as it has been prepared without taking account of your objectives, financial situation or needs. You should consider the relevant Product Disclosure Statement and Reference Guide, along with the Target Market Determination, available on www.spaceship.com.au, and obtain appropriate financial and taxation advice, before deciding whether Spaceship is right for you.

​​Past performance isn’t a reliable indicator or guarantee of future performance.

The views expressed are those of the interviewees, based on their own experiences with money, and as such are not necessarily representative of Spaceship's views.