Chris Sozou, Virgin Money Australia's General Manager Wealth and Insurance, outlines some of the lifestyle factors that influence the way you could be investing in super during your 40's.
- Higher weekly expenditure
- Older children
- Higher wages
- Future planning, including retirement
Read the full transcript: Investing in Super through your 40’s
“As the kids grow older and you ditch weekly rent for regular mortgage payments, bills continue to mount through your 40s and your approximate weekly expenditure rises to nearly $2,000.
Chances are you are also being paid more in your career, which will help. During this decade, it’s important to keep balancing your budget between stability at home and continued investment into your future. Retirement and maybe even early retirement might be something that you start to think of more and more. The amount you can contribute to super is limited each year, so it is important that you figure out how much you will need for your retirement and draw up a plan on how you will get there. Some strategies you might want to consider are Salary Sacrificing. Salary sacrificing is an arrangement you can make with your employer where you can choose to make contributions to your super from your pre-tax salary. Also, if your partner is not working or on a low income, then a spousal contribution will also help build the family retirement bucket. These strategies may provide you with some tax benefits.
It is also important to know how your super is invested and be sure that it is invested appropriately given your age. As you are in the prime of your life, you can still afford to maintain a strong allocation to Growth assets. If you’re with Virgin Super LifeStage Tracker® Balanced option, we will invest 70% of your balance in growth assets such as Australian Shares and International Shares with the remaining 30% invested in defensive assets such as Australian Fixed Interest, Australian Listed Property and cash.”