How Life Events Affect My Super
Managing your finances means not only keeping track of your current financial situation but also that of your future finances such as your super. Any major life events, or significant changes to your life, will have an effect on your finances, even though the changes to your super may not be immediately realised. It is, however, important to understand how life events impact your super in order to make informed decisions about it and your financial future.
Life changes that can affect your super include a variety of events that most people will encounter at some point in their lives. Some of these types of events include starting a job, getting married, buying a home, having children, getting a tax refund or an inheritance, getting a separation or divorce, the death of a spouse, having an illness, redundancy, or losing a job. There are of course, plenty of other events that could be considered to be major life changes and each will affect your super in different ways. Below we take a closer look at some of the most common life events along with the types of changes that can occur with your super.
Starting a life with someone is a major event and one which usually requires updating your information on current insurance policies and bank accounts as well as discussions about your shared finances and goals. It may also be time to revisit your super, learn about the spouse contribution scheme, update beneficiary information and consider ways to build your super together.
Besides the physical stress and hardship associated with illness, medical bills and loss of work can cause undue hardships on anyone. If the financial burden is particularly debilitating, you may qualify for the early release of some or all of your super. The circumstances under which the Government allows for the early access of your super is quite specific – these are outlined with additional information on the Australian Taxation Office website.
Having a Child
Starting a family is a major step and typically brings a wide variety of changes to your life. Parental leave or time off from work for childbirth, child rearing, etc. can cause interruptions to your super contributions. You may have access to some form of Government assistance through your super which you should take advantage of, especially if only one spouse is working, and after the baby is born, it is important to know how to get your contributions back on track.
These are just a few of the ways that your super can be affected by events in your life but there are many more unexpected and unplanned situations that can and do occur.
At Nationwide Super, we understand that changes can have a profound effect on your business and personal life, particularly your financial situation, and which also can impact your financial security for the future. That’s why we strive to simplify the complexities involved with managing, protecting, and building your super. For more help with determining how a life event may affect your super or for additional information on other ways we can assist you with your super, contact us today.