Spring clean your super

01/04/2014
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Provided by Mercer.


With summer just around the corner, now is a great time to get everything in order with a bit of spring cleaning. So this year, why not start with your superannuation?

It's well worth the effort of tidying up your super arrangements every now and then – by getting your super in order you can make sure it continues to best fit your needs so you can get the most out of it.

Experts suggest reviewing your super every year or so (or earlier if your circumstances change). The reality is that most of us do it less frequently.

The good news is that reviewing your super arrangements doesn't need to take a lot of time. Here are some quick tips to get you started:

 

1. Is your current investment choice still appropriate?

It's important your savings are invested in the option that's best for you. When looking at your current investment options, ask yourself: Does my current investment choice provide the level of long-term returns that will help me reach my target? How far off am I from withdrawing my savings? Do I still feel comfortable having my funds invested here?

Take a look at whether you are better suited to growth-type investments (with a higher risk of negative returns in the short term, but more chance of higher returns in the longer term) or defensive assets (with less risk of negative returns short term but also more likelihood of lower returns in the long term).

If you think your current investment choice doesn't stack up, we strongly recommend you talk to an authorised financial adviser. Let the professionals look at your investment arrangements and help you decide where the best place for you to invest is. You should also check out the document library on your scheme's website for more information about the investment choices available to you.

 

2. Are you contributing enough?

Your retirement might last 20 years or more. It's a long time, so make sure you will have enough saved to fund an enjoyable retirement.

If you're looking to boost your super, upping your contributions is a great place to start. Remember, the more and the earlier you contribute, the better off you will be. Not only are you putting more towards your retirement, but you have more of your savings earning interest.

Think about any extra cash you might have. For example, if you're young and have a bit of disposable income to play with, why not invest it? Your 65-year-old self will thank you!

 

3. Do we have your correct details?

Make sure your contact details are up-to-date so you don't miss out on important information about your scheme, such as your annual report, benefit statement and other updates.

It's easy to check and update your contact details: simply log in to this website (if you don't have your Member Number and PIN call the Helpline) or call the Helpline. You can change your details by logging in to this website, contacting the Helpline or by completing the relevant form in the Documents and Forms section.

 

4. Are your loved ones still protected?

What would happen to your loved ones if something happened to you? Make sure they are protected.

If your scheme offers an option to nominate beneficiaries, check these are still up-to-date and, if necessary, update the details by logging on to this website or calling the Helpline. You should always look at this if any of your personal circumstances change, for example if you marry, have a child or divorce. If you have a Will, you should also check this.

If you have any insurance cover (whether this be inside your scheme or outside), make sure you have enough cover for your loved ones should something happen to you.

 

Any advice contained in this document is of a general nature only, and does not take into account the personal objectives, financial situation and needs and circumstances of any particular individual. Prior to acting on any information contained in this document, you need to take into account your own objectives, financial situation and needs and circumstances, consider the investment statement for any funds you may decide to contribute to, and seek professional advice from an authorised financial adviser if you are unsure of what action to take.

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This information has been prepared by Mercer (N.Z.) Limited for general information only. The information does not take into account your personal objectives, financial situation or needs. Therefore, you should not act on this information if you have not considered the appropriateness of this information to your personal objectives, financial situation and needs. You should consult a financial adviser before making any investment decision.

 

This website is provided by Mercer (N.Z) Limited on behalf of the trustee of the Police Superannuation Scheme (PSS). The trustee pays a fee for the provision of this service, however this fee is not conditional on you using this service or acting on the information or advice provided through this service.

PSS Trustees Limited is the issuer of the Police Superannuation Scheme (PSS). A copy of the PSS product disclosure statement is available under Documents and forms and at companiesoffice.govt.nz/disclose.