The 3 reasons you should care about retirement. Yes, now.

Thanks to our brand partner, Aware Super

Let's be real: your first thought this morning probably wasn't, "It's time to think about retirement."

And why would it be? You've got bills to pay, a household to hold together and so many unanswered emails.

If you struggle to stay on top of next week's schedule, let alone plan for the next 40-odd years, you're in good company. In fact, a government survey from 2020, found over two-thirds of us haven't thought about how much we'll need for retirement.

Believe me, I get it. Before I started writing about women's super, I wasn't even 100 per cent certain which fund I was with (don't worry, I am now). But if the chaos of the last four years has taught me anything, it's that a long working life isn't always a guarantee.

So, whether you're in your 20s, approaching midlife or somewhere in between, it's time to start thinking about your future — like now. Here's why…

1. The earlier you start, the better off you'll be. 

It's no secret that one of the best ways to ensure your golden years are, well, golden, is through superannuation.

This is all thanks to compound interest. Unlike simple interest, which only earns interest on your initial investment, compound interest allows you to earn interest not just on your original investment but also on the interest that accumulates over time.

That's what makes superannuation such a worthwhile investment, and the key player here is time.

"The sooner that you start thinking about it, the less hard work you actually need to do," said Aware Super's Chief of Staff and Group Executive for Comms and Advocacy, Kat McPhee.

"I know it feels counter intuitive, but the more you do early, the better off you'll be in retirement."

Kat explained that by the time you reach retirement, half of the money in your retirement fund (or super) will have come from investment returns.

"And then, when you get into retirement, another third of all the money that you get from the system is from investment returns. So, you're always better off doing it a little early than trying to do it a lot later, because you just can't make up the time."

This means that even small early contributions give your money more time to grow and go further than investing the same amount later.

If you're feeling confused, don't worry — there are plenty of tools to help, especially with profit-to-member funds like Aware Super, where everything is reinvested for members. To start, Aware Super's Learn Hub has plenty of free videos and resources to help you with the basics.

You can also make use of their My Retirement Planner to help you work out how much you'll need to achieve the kind of retirement you want. Once you've entered some key info, you'll get a retirement confidence score to help you see how close you are to your goals, along with a step-by-step action plan.

This is one of the key reasons why Kat said choosing the right super fund can make all the difference.

"A super fund's job is to provide your financial outcome for retirement. That's number one. So, the two things you need to look at are: do they perform well? And are they there to help you?" she said.

Aware Super certainly ticks those boxes, with competitive fees and consistently strong investment returns over 15 years. You'll also have access to one-on-one support with their Super Helpful Check-in or Retire Ready Check-in.

"You can chat to someone more generally, all the way through to getting financial advice. And if it's just about super, then it's at no additional cost."

2. You never know what the future holds.

Of course, none of us knows what the future holds, but having a plan for the unexpected makes roadblocks easier to navigate.

When it comes to the end of our working lives, Kat had some pretty sobering stats for us. "Two in five Australians don't choose when they retire, and 40 per cent of Australians don't have a clear plan on how they would prepare for retirement."

This means that if you become ill or need to stop working early to care for others, you could be putting your own future in jeopardy. 

This conversation is especially important for women due to the gender super gap.

According to The Australia Institute's Centre for Future Work, women have, on average, $136,000 less in super than men by retirement. With many women's supers falling behind by their late 20s, it's never too early to get on top of it.

3. The better your plan, the more options you'll have.

Whether it's training for a triathlon or setting yourself up for the simple beach-side lifestyle you've always dreamed of, your golden years are only going to be as golden as your finances allow.

According to The Association of Superannuation Funds of Australia, a single person will need approximately $1000 per week to live a comfortable life in retirement, so knowing how you want yours to look is the first step to making it happen.

And, according to Kat, there's absolutely no reason to be ashamed if you're not exactly where you want to be.

"I mean, we've always got that, 'I should have been here by now' kind of narrative in our heads, which is really unhelpful," she said. "But we have a saying here: start where you are, use what you have and do what you can."

Visit Aware Super to start feeling confident about your future.

Aware Super's High Growth option return over 15 years to September 30, 2024 was 9.28 per cent. SuperRatings Fund Crediting Rate Survey, September 2024. Based on SR50 Growth (77-90) Index.     

Consider if Aware Super is right for you and read the PDS & TMD at aware.com.au/pds before deciding. Past performance is not indicative of future performance. Members can get advice about their Aware Super accounts at no extra cost, or advice on their broader needs for a fee. Advice provided by Aware Financial Services Australia Limited (ABN 86 003 742 756, AFSL 238430), wholly owned by Aware Super. Issued by Aware Super Pty Ltd (ABN 11 118 202 672, AFSL 293340) as trustee of Aware Super (ABN 53 226 460 365).

Feature Image: Getty.

No matter how far, or how close retirement is for you, as super and retirement experts - Aware Super can help you feel more confident about it. With super helpful tools like their free My Retirement Planner and educational videos - along with their strong long-term performance - Aware Super will help you get sorted for your new retirement rhythm.