What to do When Your Superannuation is Going Backwards
Superannuation is a vital part of your financial future, especially when planning for retirement in Australia. It's disheartening when your superannuation balance is going backwards instead of growing. However, it's not too late to take action to get back on track. Here are some steps you can take and What to do When Your Superannuation is Going Backwards:
Check Your Investment Strategy
Your investment strategy plays a critical role in the performance of your superannuation. If your superannuation balance is going backwards, it may be time to re-evaluate your investment strategy. A more conservative investment approach may be necessary if you are closer to retirement age. On the other hand, if you are younger and have a long-term investment horizon, you may need to adjust your investment strategy to include more growth investments.
Review Your Superannuation Fees
Superannuation fees can eat into your investment returns and impact the growth of your superannuation balance. If you notice that your superannuation balance is going backwards, it may be worth reviewing the fees associated with your superannuation account. You should compare the fees charged by your current superannuation fund with other funds to ensure you're getting the best deal.
Consolidate Your Superannuation
If you have multiple superannuation accounts, you may be paying multiple fees, which can negatively impact the growth of your superannuation balance. Consolidating your superannuation into a single account can save you money on fees and make it easier to manage your superannuation balance.
Make Extra Contributions
Making extra contributions to your superannuation account can help boost your superannuation balance and offset any losses. You can make extra contributions by salary sacrificing or making after-tax contributions. You may also be eligible for a government co-contribution, which can provide an extra boost to your superannuation balance.
Seek Professional Advice
If you're unsure about what to do if your superannuation is going backwards, it may be worth seeking professional financial advice. A financial planner can help you evaluate your current situation, identify the reasons why your superannuation balance is going backwards and provide you with strategies to get back on track.
Knowing What to do When Your Superannuation is Going Backwards is important, however it may not be not a call to be reactionary or make dramatic changes. It's actually not uncommon for superannuation balances to go backwards from time to time. However, taking proactive steps to re-evaluate your investment strategy, review your fees, consolidate your superannuation, make extra contributions and seek professional advice and get a superannuation performance review can help get your superannuation balance back on track. Remember, it's never too late to take action to secure your financial future.