Superannuation is still the largest single investment any of us will make in our lifetime - typically second only to home ownership.

It is also the most tax-effective way to save for retirement.

Why you need super
With Australia's ageing population the Government will not be able to provide a comfortable retirement for everyone. So to be financially secure, you will need to self-fund your retirement.

When to start saving
Your financial superannuation benefit not only depends on when you start investing, but also on the returns you can achieve on your investment. The obvious message here is to start saving for the long term as soon as you can and choose an investment that matches your risk profile and investment timeframe. Start accumulating your superannuation as soon as possible, to take advantage of both the available tax concessions and the effects of compounding returns. Of course it is never to late to start investing superannuation but you may have some catching up to do.

How much to save
That depends on how much income you think you'll need in retirement. Settle on an annual income figure and work backwards, i.e. how much would you need to save to earn that income. Remember to use conservative estimates when looking at annual rates of return - it is better to be on the safe side than to leave yourself short.

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