text: A review of your super is also critical in remaining compliant, both with your overall superannuation strategy and the relevant laws governing Australian superannuation.
  This article will outline three key factors to think about in your super new year’s resolution including your retirement vision, investment strategy and compliance.
  Consider how long you can and are willing to work – you may need to account for unforeseen changes to your health, your current standard of living, interests, location and circumstances of your family and general life aspirations.
  How much is your desired retirement lifestyle likely to cost? Make allowances for inflation – your like for like living costs between now and your retirement will likely change.
  Take a conservative approach – forecasting returns on capital at a minimum will ensure that your target balance is realistic and will comfortably generate the required annuity to fund your lifestyle.
  If any of the above have changed since your last super review, your strategy may need adjustment to keep you on track to achieving your retirement objectives. For example, you may need to increase your super contributions or target a higher return.
  A diversified portfolio has a range of investments of varying types, markets and industries. Diversification can help prevent market volatility from devastating or damaging your savings and returns. Reviewing the extent of diversification of investments can help manage risk, especially for self-managed funds.
  In your diversification strategy, consider the increasing importance of corporate social responsibility and sustainability in the contemporary business environment and the value and returns of different investments.
  Your risk profile must be reviewed as the level of risk your willingness to accept risk will fluctuate according to your proximity to retirement and changes to your own risk appetite. Generally, people closer to retirement are more risk averse as they lack time to recover losses.
  Assess whether you are likely to meet your targeted capital balance in the anticipated timeframe by using the returns your retirement assets are currently generating as a guide. If there is a shortfall you may have to adjust your strategy or the timing of your retirement vision. You should have an achievable targeted capital balance that will provide the necessary income or annuity to fund the retirement you desire.