Super is a team event for couples

While I’ve been providing advice on superannuation for more than 20 years now, it constantly amazes me that so many couples are happy to look upon their home and mortgage as a joint asset but treat their superannuation as separate assets.

Certainly, it’s not possible to have a shared super account, but it is possible to link them to minimise fees and usually better outcomes are achieved by adopting joint investment strategies.

Nonetheless, many couples are determined to keep their super to themselves and keep their savings in separate funds, with different strategies and different outlooks as to what they are hoping to achieve.

This makes no sense. Its not as though during a divorce for example you can keep your super hidden from your partner, when it comes to dividing matrimonial assets. You can’t. Your super will get piled in and split along with everything else.

Why do couples do this?

It makes a lot more sense for couples to sit down and look at their super savings as a joint asset and make joint decisions as to how they can get the most out of their savings and achieve their long-term goals.

In choosing a quality superannuation fund like Netwealth to house both super accounts, a couple can benefit from linking their accounts as part of a family group and reduce their overall superannuation fees.

It also makes it much more cost effective to access financial planning advice as a couple and I think we all accept you are better off getting investment advice from a professional as to how best to structure and manage your investments.

It means you can put in place complimentary investment strategies where you can invest your savings in a greater spread of quality investments and make sure you are getting the very best possible overall returns.

There is also no doubt superannuation is the best vehicle for most people to hold risk insurance and if you can see each other’s super accounts, you can clearly see how much risk insurance you each have and whether it is the right combined amount for your situation.

It also makes it much easier for clients to set goals regarding their superannuation savings and how boosting their contributions along the way can make such a significant difference to their financial position in retirement.

While just having a bare $100,000 in super can make a big difference to your retirement plans, increasingly, the goal is to have at least a $1 million in super as a couple and while that might seem unattainable, it is more possible than most people think.

Just as when you take out a mortgage and you think you will never pay it off, bit by bit over the years, with hard work and determination most mortgages are fully repaid, and it is the same for superannuation savings.

And just as it’s the case with your mortgage, pooling your efforts will get you the best result.