Planning for a secure financial future is important

• The earlier you start, the longer you have to invest towards your financial goals and living a comfortable retirement

• The earlier you start, the lower the amount you may need to invest on a regular basis

Even if you are close to retirement, it is never too late to start planning as every dollar counts.

Superannuation is one of the most tax effective ways of saving for your retirement. The maximum rate of tax that you pay on your earnings in your superannuation fund is 15%, whereas earnings on your normal savings outside super are taxed at your marginal tax rate - up to 48.5%.

What is the best way to make sure I have enough super when I retire?

Start saving straight away! Even a few dollars a week can make a considerable difference to the amount of money made available to you when you retire. The sooner you start saving, the faster your money will grow.

When you start to invest regularly, you will enjoy the effects of compounding. This occurs when income earned on your savings is re-invested, so you earn money on your initial capital as well as on any income you have already earned.

Maintain a regular  investment plan. The easiest way to do this is to arrange a direct debit from your salary or bank account into the investment vehicle you have chosen.

The key to success

Establish your financial goals, develop an investment plan and start saving regularly as soon as you can to make sure that compounding works for you.

Choosing a superannuation fund

When choosing a super fund, consider the following points:

• Portability: if you start a new job, don't open up another super account and pay double up on fees. Make sure that super contributions from your new employer go into the one super fund.

• Rollover facilities: when you retire, you can roll over your lump sum into an allocated pension or term allocated pension account. Your financial planner can provide you with more details on allocated pensions and how you can create retirement income streams

• Insurance: access personal insurance plans through your superannuation, for example, life insurance, total and permanent disability and income protection

• Communication: you should be able to access your account information online or on the phone

• Fees and charges: make sure you are aware of all fees and charges on your super account

To find out more about the various superannuation funds available and which ones suits you best, or if you would like more details on retirement planning, speak to one of the financial planners at Intellichoice today on 1300 55 10 45.