The Role of Superannuation in Your Financial Future
There’s often a lot of noise surrounding superannuation – and not all of it is well-informed. As your financial planning team, we want to help you cut through the confusion and focus on what really matters for your future.
You may recall the government’s decision during the pandemic to allow early access to superannuation. While the intention was to ease financial hardship, we were concerned by how some of that money was used. Reports revealed people spending their super on cosmetic surgery, lifestyle purchases, or everyday expenses—uses that didn’t always reflect genuine financial distress.
We were concerned because withdrawing just $20,000 from your super years before retirement could significantly reduce your retirement balance. Thanks to the power of compounding, the long-term cost of early access can be substantial—potentially leaving you less financially secure in retirement.
There are two main schools of thought when it comes to super access. One argues that super should be reserved strictly for retirement or cases of genuine hardship. The other believes that since the funds are yours, you should be free to access them at any time.
A more balanced perspective has gained traction: allowing first-home buyers to use part of their superannuation as a deposit. This idea brings together two important financial goals—long-term wealth creation and home ownership. Entering retirement without a mortgage can significantly reduce financial pressure, and the option to downsize later can unlock further flexibility. For many, this approach could also improve overall wellbeing and life satisfaction.
Why Super Matters
From an investment perspective, superannuation offers compelling advantages. It’s structured to support disciplined, long-term investing, with protections in place to help reduce the risk of poor decision-making. And because it’s a long-term vehicle, short-term market volatility becomes less of a concern—provided your investments match your risk profile.
Two key principles at the heart of super are:
- Compounding: Reinvesting your returns helps grow your balance faster over time.
- Dollar-cost averaging: Making regular contributions helps smooth out market fluctuations.
It’s also worth remembering: super is not an investment in itself—it’s a tax-advantaged structure that holds your investments. The investments inside super can be similar to those outside it, but the rules and benefits are what set it apart.
Managing Super Effectively
Your super should be managed in line with your financial goals, life stage, and risk tolerance. Beyond just investment returns and fees, ask yourself:
- Am I receiving superannuation advice tailored to my situation?
- Do my investment choices align with my values and goals?
- Can I easily adjust my investments, insurance, or beneficiaries?
- Is my insurance within super appropriate for my needs?
- Am I reviewing my investment strategy regularly?
- Am I taking advantage of all available strategies to improve my retirement outcome?
At Continuum Financial Planners, we’re here to help you make the most of your super. Whether you’re just starting out or planning your retirement, our advisers can guide you every step of the way—ensuring your super works for you, both now and into the future.
Ready to talk?
- Phone our office, on 07 3421 3456, or
- At your convenience, use the linked Book a Meeting
(This article was first posted by us in the May 2022 eNews. It is occasionally refreshed/ updated, most recently in May 2025.)
