Your super is changing. Here's what to check.

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How Do They Afford That? 22 min 3 speakers 8 chapters transcribed 10 days ago
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What is payday super and how does it change the way super contributions are paid?

Michael Thompson 0:01
Welcome to How Do They Afford That, the podcast that peeks into the financial lives of everyday Australians. I'm Michael Thompson. I'm an author and the co-host of the business news podcast, Fear and Greed. And as always, I'm with Canna Campbell, financial planner, founder of financial literacy platform, Sugar Mama TV, and my co-author on our book, 12 Months to Financial Freedom. Canna, hello. Good morning. So, payday super. You love superannuation. I
Canna Campbell 0:28
do. Super is sexiest, even sexier than ever before.
Michael Thompson 0:32
That's a big call.
Canna Campbell 0:33
It is, but I stand by it. I'm not ashamed to admit it.
Michael Thompson 0:36
I know you're not. You've never been ashamed of your passion for superannuation. But payday super is new. Payday super is different. It is changing the way Australians receive their super contributions and it all changed from July 1 of this year. And so as background, your super is now paid at the same time as your salary and wages rather than happening quarterly. Okay. There's been a lot of discussion over the last few months and in the lead up to it about what employers needed to do to get ready and how payroll systems would have to change. And that doesn't necessarily affect everyone. But what does affect everyone is what you actually do when you receive that super, when your payments are coming in on the same cycle.
Michael Thompson 1:24
as your pay, what that can mean for your superannuation and your future and how you can make it work for you. That's where we're going today. How to make payday super work for you. Why is payday super such good news for employees?
Canna Campbell 1:45
Well, traditionally, superannuation was paid quarterly for most people. So it means that money is being paid, say, weekly or fortnightly or monthly when you get paid. So that money is being invested sooner. So therefore, it has greater opportunity to compound over time. But also, I think there is a... oh gosh, intangible value you could say attached to this because I think it encourages you to actually engage with your superannuation more and it's also easier to track as well. So if you get into a situation where your employer falls behind, you're finding and discovering that a lot sooner rather than later. So you're, I guess, also protecting yourself from the financial consequences of an employer being behind in their super contributions.
Okay.
Michael Thompson 2:29
How much attention do you think Australians, most of us, pay to our super? And do you think then in that case that payday super is the time, is the opportunity to change that?
Canna Campbell 2:44
So I did a bit of research because I was curious about this because obviously I talk about money and I regularly engage with my super, as you know. I'm not surprised by that. But according to AMP, 25% of Australians never check their superannuation whatsoever. Wow. Isn't that interesting? I was quite horrified. We're going to change that, though, through our book. And then 44% only check it once or twice a year, which leads me to the question, how often do you check your super?
Wow.
Canna Campbell 3:11
Oh, you look so guilty. No. I've so busted you.

Why is receiving super with each paycheck considered good news for employees?

Michael Thompson 3:15
I check my super. Oh, it would be every month. Okay. It is probably. Yeah. You tell me the truth. I am. I am. And it is because, I'll tell you why. It is because I changed super funds. about a year ago. And the fund that I am with now, and I intend to stay with them long term, right? I'm not going to be changing every week or every year. I would like to be there forever. But the fund that I moved to has a really... accessible app and so it has become super easy just to jump in check it quickly and get back out and if anything i was probably actually checking it too often i was kind of in there every week going this is so
Greg Foot 4:03
cool
Michael Thompson 4:04
i love this thing but now i've just kind of gone back to that once a month Is that all right? Is that okay?
Canna Campbell 4:09
I think once every two months is healthy, or maybe if you're busy, once a quarter. But checking your superannuation, particularly to make sure your superannuation contributions are going in, is essential.
Michael Thompson 4:21
So I'm okay.
Canna Campbell 4:22
I think, yeah, look, once a month is fine. There's nothing wrong with it, as long as you're not getting emotional about it and

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