February 1 2023

How do I make the most of my super in my 20s?

If you’re like most people, your 20s is when you start your career, make serious money, and start making important life choices. That’s why it could be a great time to start thinking about your financial future and how you can make the most of your super.
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What you’re probably doing in your 20s: working hard, studying hard and playing hard. What you're probably not doing in your 20s: thinking about your super. And that’s understandable – retirement is so far away for you that it doesn’t feel real.

But at the end of the day, super is your money. So even if you can’t use it yet, it makes sense to stay on top of your money. Here are 5 simple tips to help you manage your super in your 20s.

1. Consider keeping your super all in one place

If you’ve worked in one or more jobs, it’s possible that your super is spread across multiple funds. One of the first things you can do is to consider if keeping your super all in one place is appropriate for you .

Consolidation could make your super easier to manage and save on fees but, depending on which fund you consolidate with, it might result in loss of benefits such as insurance cover, reduced investment performance and higher fees. So before combining your super, make sure you compare all your options and choose the fund that’s right for you. Check out the fees and costs of your other fund(s) plus any benefits that would be lost, such as insurance cover. Make sure your other fund knows about any contributions you intend to claim a tax deduction for, before combining. If you have any questions, speak to a licensed financial adviser or visit the ASIC MoneySmart website for more information. 

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2. Check that you’re getting paid super – and the right amount of it

Even if you can’t use it for some time, super is your hard-earned money. That’s why you should take the time to make sure you’re getting what you deserve.

Whether you’re working full-time, part-time, or casually, if you’re over 18, your employer must pay you a minimum amount of super contributions1. This is called the super guarantee. Currently, the super guarantee rate is 11% of your wage or salary, but this will rise gradually to 12% by 2025.

To check if you’re getting paid the right amount of super, take a look at your next pay slip. You should see that at least 11% of your earnings is going to your super. If you can’t see this, it’s a good idea to speak with your employer.

3. Check that you’re invested in the right option

As a 20-something, your investment choices might feel insignificant now. But for many of us, super is one of the biggest financial investments we’ll hold. So, it’s important for you to take control of how that money gets invested.

One way to do this is to be across your super fund’s investment options. When reviewing your investment options, think about the level of risk you’re comfortable with and the longer time frame you’ll have as a young person. You might also want to consider your personal values.

4. Consider boosting your super

If you earn below $58445 (for the 2023-24 financial year ) and contribute some after-tax money to your super, you may be able to receive a boost from the government if you are eligible. It’s a great time to take advantage of the government co-contribution incentive if you’re earning a lower income and comply with eligibility requirements.

As someone who has time on their side, adding a bit of money into your super now, if you can afford it, can also give you a head start. Starting small earlier could make a huge difference to how much money you could have in the future.

Learn how you could grow your super

5. Download the Rest App

Did you know that if you’re a Rest member, you can do all of the above in the Rest App? It’s one of the easiest ways to stay on top of your super. You can also check your super balance in seconds and access member rewards, exclusive to members using the Rest App.

Get the Rest App today

1If you’re under 18 years old, you must also work more than 30 hours per week to be entitled to super contributions. Read more at https://www.ato.gov.au/businesses-and-organisations/super-for-employers/work-out-if-you-have-to-pay-super#Employeesagedunder18

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