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A helpful guide to understanding the basics of super. Superannuation, commonly known as ‘super’, is money set aside while you’re working so you’ll have money for retirement. Your money is put into a fund, where it’s invested on your behalf by a trustee, to help you earn returns and grow your savings. The amount of super you’ll end up with when you retire depends on a number of factors, including: how much has been made in contributions how long you super’s been invested the type of investment option you’ve selected the investment returns your money has earned, and the amount you’ve paid in fees and insurance premiums Many people think of their super as an investment that takes care of itself but the choices you make about your super and investments could make a big difference to your quality of life in retirement. What are super contributions? A super contribution is money that’s deposited into your super account, either as an ongoing payment or as a one-off. Usually made by you or your employer. What is the superannuation guarantee? Your employer is required to contribute 10.5% of your before-tax income into a super fund. These payments are known as super guarantee (SG) contributions (also known as employer super contribution), and they form the foundation of your super. Employer super contributions are taxed at a lower rate than most income tax brackets, so it’s important to provide your tax file number (TFN) to your super fund to avoid extra tax being taken out. You’ll also need to provide your TFN if you want to make any personal super contributions. How can I make other contributions into my super? In addition to your SG contributions, you can also contribute more money to your super account in the form of voluntary contributions. You can make these contributions using either before-tax or after-tax money. In many cases, they’re taxed at a lower rate than your income, so they can be a good way to build your retirement fund while being tax-efficient. Keep in mind that there are caps to the amount you can contribute depending on your age and circumstances. What types of super funds are available? There are a number of different types of super funds on the market, including: Retail super funds—typically owned and run by financial services companies and open to anyone to join. Industry super funds—usually tied to a specific industry. Some are open to anyone, while others are only open to employees in that industry. Corporate super funds—typically arranged by a company for its employees. Some are operated by the employer (under a board of trustees), while others outsource their operation to a retail or industry fund. Public-sector super funds—usually only open to employees of federal and state government departments. Self-managed super funds (SMSFs)—private superannuation funds that are managed by members (one to six people). In most cases, you can choose which fund you’d like your super to be invested with – so it pays to do your homework and find a super fund that offers the investment options and features you’re looking for. Source: AMP  

Worrying about your finances can take a real toll on your mental health. With many people experiencing financial stress, we look at what you can do to improve your financial (and mental) wellbeing. According to the Melbourne Institute, one-in-three Australians are now reporting financial stress, while one-in-five are feeling ‘mental distress’. The Melbourne Institute also found that self-employed, casual and contract workers are especially vulnerable to both financial stress (which is defined as difficulty paying for essential goods and services) and feelings of depression and anxiety. It’s well known that our financial wellbeing and mental health go hand in hand. Severe or prolonged financial stress can trigger symptoms of anxiety and depression, relationship breakdowns, trouble sleeping and anti-social behaviour. This in turn can lead to further poor decision making when it comes to money. Fortunately, there are things you can do to improve your financial security and wellbeing. If you’re experiencing financial stress, here are some practical steps you can take to get back on track. Give yourself a financial health check When you’re experiencing financial stress or hardship, it can be tempting to avoid the problem altogether; but this only makes things worse. Once you gain a clear understanding of your financial position, you’ll feel more in control and can take steps to improve your position. Start by doing a financial health check to assess where your income is going. Use a spreadsheet or budget planner to list your income, debts and expenses. Then look for opportunities to reduce your expenses, pay down debt and increase your savings. Renegotiate your bills Renegotiating what you owe is a smart way to free up some cash flow for daily living and ease the pressure you feel about meeting your obligations. If you’re having a hard time meeting expenses, it’s important to speak to your service providers as soon as possible. Let them know you’re doing it tough and ask to negotiate lower repayment amounts and extended timeframes. Don’t be shy to ask for a better deal on any services you use, including phone bills, internet and utilities. Most organisations will try to work with you – it’s better for them to get paid (albeit slowly) than for you to default on what you owe them. Pay down debt With more cash flow available, you can concentrate on clearing your debts, a key step on the path to financial freedom. If you have lots of debt, it’s worth seeking the advice of a financial counsellor. They can advise you on the most efficient and cost effective way to repay what you owe. You might be able to refinance, take advantage of ‘no-interest’ periods or consolidate your debts into a single monthly repayment at a lower rate. Just make sure that you get advice from a licenced professional, and that you’ll definitely be paying less. Make bank accounts your best friend Keeping all of your money in one bank account makes it hard to keep track of how much you have and how much you owe. One simple strategy to help you manage your money is to set up several bank accounts, each with a different purpose. For example, one to receive your income, another to pay household expenses, one for discretionary ‘spending’ and one for saving. You can set up automatic payments to transfer the right amount of money into each account when you get paid. That way, you’ll always have the money put aside to pay your bills as they arise. Make sure to set up direct debits or automatic payments for each of your regular household bills from your expense account, so there’s no chance of falling behind in future. Build your savings Feeling financially secure goes hand in hand with having a good financial safety net in place. The more you have put aside for a rainy day, the less stressed you’ll feel when things don’t go to plan. Aim to build up your emergency fund to cover six-months’ worth of living expenses for yourself and your family. Again, creating an automatic transfer of funds to your ‘emergency’ savings account each month is an easy option. Then sit back and watch your savings grow. Source: Money and life

While you may have been putting off the money talk with your partner, matters of the bank account are very important. In fact, discussing your finances with a long or short-term partner, can save you uncomfortable conversations down the track, especially when you start to manage money together. While you don’t necessarily need to know about your partner’s morning coffee run, some of the basics to discuss could include: Money talk – their debts If your partner is in debt, it’s important to know what you may be inheriting. While it might be a tough one to discuss, one in six consumers struggle with credit card debt in Australia alone. Which means it’s a common conversation that needs to be had. According to psychotherapist and couples therapist, Melissa Ferrari, one of the major money issues in a relationship is the perception of dishonesty. Keep in mind, however, that you are not legally responsible for repaying your partner’s debts, assuming they aren’t joint debt and you haven’t agreed on being a guarantor. Money talk – defaults or bankruptcy The reality is defaults or bankruptcy could impact you, or your partner’s credit score and cash flow, not to mention, your future plans with them. If you have joint accounts, then one partner’s credit rating can affect the other, which may determine how you manage money together. Tim adds: “Many couples may find themselves wanting to buy a home together at some point in the future. With homeownership more often than not being accompanied by the need to borrow, understanding each other’s financial position when it comes to borrowing will be important. Money talk – financial goals Do you both have the same vision for the future? Do you want to travel the world while you partner wants to invest in shares? Do you both want to buy property or is one of you happy to rent for the foreseeable future? Having the money conversation early, and knowing this upfront, could help you compromise or save you from heartache down the track. Money talk – joint finances To combine or not combine – that is the question. Deciding whether or not to combine assets and finances, or apply for joint loans, can be quite complicated, which is why it’s important to identify the benefits of both: Pros for combining Knowing the complete picture for your joint finances, and allowing you to strive to achieve joint financial goals Equal access to funds, particularly in the case of an emergency Cons for combining One partner’s credit score, could affect the other, especially in joint asset or financial applications Some people might see combining finances as a loss of independence May cause strife in situations where each partner manage money differently, and there’s yet to be agreement on a budget both are comfortable with. In situations where you partner has existing debts or has previously declared bankruptcy, it might be valuable to seek advice from lawyers, accountants, and financial advisers on managing this. All is fair in love and war Having practical conversations about finances upfront, can help you find a fair and comfortable way of managing your future with your partner – for better and for worse. Source: BT

Losses to imposter bond investment scams have nearly tripled in the first half of this year with consumers losing over $20 million to these sophisticated scams. Imposter bond scams usually impersonate real financial companies or banks and claim to offer government/Treasury bonds or fixed term deposits. People often fall victim to them after searching online for investment opportunities and completing enquiry forms via fake third-party comparison sites. The latest Scamwatch data reveals there were 228 reports of imposter bond scams between January and June, compared with 82 reports in the first half of last year. Losses suffered by Australian victims of imposter bond scams increased by 265 per cent in the first half of the year, compared to the same period last year. However, the true losses to these scams are likely to be much higher, as research shows that only around 13 per cent of scam victims report their losses to Scamwatch. “We are seeing an alarming increase in imposter bond scams, so we are urging Australians to be very cautious when presented with investment opportunities,” ACCC Deputy Chair Delia Rickard said. “As interest rates rise, people looking to invest in bonds are falling victim to these scams after searching online for investment opportunities. This is often after they complete enquiry forms on fake third-party comparison websites.” “These comparison sites can appear very convincing, and people are providing their details under the impression that these are legitimate Australian sites comparing real financial services,” Ms Rickard said. “Convinced they are making a long-term, legitimate investment, it’s common for victims to deposit larger sums upfront and not check their account for months before realising they were scammed.” More than half of those who reported losses to imposter bond scams were first contacted by phone, accounting for $11 million in losses. Source: Scamwatch

People who have been financially stressed in the past are often able to recover through changes to their behaviour and mindset. Here are some suggestions of things you could do which may help you to improve how you feel financially. Create a budget that works for you When it comes to creating a budget, try jotting down into three categories – what money is coming in, what cash is required for the mandatory stuff (such as bills), and what might be left over (which you may want to put toward existing debts, savings or your social life). Writing up a budget may take an afternoon out of your diary, but it will help you to more easily identify where there’s room for movement. For instance, could you reduce what you’re spending on luxury items, subscription or streaming services, eating out or clothing? Consider rolling your debts into one If all the small debts you once had, have multiplied, and grown into bigger debts – you could look to roll them into a single loan, and reduce what you pay in fees and interest. This could help you to save a significant amount of money (depending on what you owe) and make it easier to manage your repayments, as you’ll potentially only need to make one monthly repayment rather than having to juggle several. The main thing to ensure is you are paying less than what you are currently when it comes to interest rates, fees and charges, and that you’re disciplined about making your repayments. Try to save a bit of money regularly Even a small amount of cash deposited on a frequent basis could go a long way toward your savings goals, with a separate research report indicating the average savings target for Aussies is a bit over $11,000. Some tips people said helped them along the way was transferring spare funds into an actual savings account, setting up automatic transfers to their savings account (so they didn’t have to move money manually) and putting funds into an account which they couldn’t touch. Set aside some emergency cash With research showing that an emergency fund of between $4,000 and $5,000 is generally enough to cushion most working Aussies when it comes to unexpected expenses, it’s probably worth some thought. An emergency stash of cash could give you peace of mind and reduce the need to apply for high-interest borrowing options should you be faced with a busted phone, car tyre, or bad landlord or lover leaving you financially stranded. Be open to talking money with your partner One in two Aussie couples admit to arguing about money, so if you haven’t already, it might be worth sitting down to ensure you’re on the same page and that both parties’ goals are being considered. See if you can get a better deal with your providers You more than likely have several product and service providers, and figures show you could save more than a grand annually on energy alone just by switching from the highest priced plan to the most competitive on the market. Again, this may take a couple of hours out of your day, but the savings you could potentially make may make a real difference to what you cough up throughout the year. Don’t be afraid to seek financial assistance If you are struggling to make repayments, you may be able to seek assistance from your providers by claiming financial hardship. All providers must consider reasonable requests to change their terms in instances where you may be suffering genuine financial difficulties and feel help would enable you to meet your repayments, possibly over a longer period. In addition, you can talk to a financial counsellor (free of charge) at the National Debt Helpline by calling 1800 007 007. Source: AMP  

Key points Share markets remain under pressure from high inflation, rising rates and bond yields and the rising risk of recession and the threat that poses to company profits. With the rising risk of global recession, global and Australian shares are at high risk of further falls in the short term. However, it’s not all negative. Pipeline inflation pressures are continuing to decline, and inflation expectations remain relatively low which should enable central banks to become less hawkish from later this year. Share market seasonality also improves into December and the direction setting US share market normally sees strong gains after mid-term elections. Introduction Investors could be forgiven for looking back on the pandemic years of 2020 and 2021 with fond memories. After the initial shock in February-March 2020 it was a period of strong returns and relative calm in investment markets. This year has been anything but. After falling sharply into mid-June (at which point US shares had fallen 24% from their highs, global shares 21% and Australian shares 16%), share markets rallied into mid-August reversing half of their declines on the back of hopes the Fed would pivot towards an easier monetary stance and hopefully avoid a recession. Since mid-August though, shares have fallen again and are now back to around their June lows. Bond yields have pushed up again with US, UK, German 10-year yields rising to levels not seen in a decade.   What’s driving the renewed weakness The plunge in shares back to their June lows mostly reflects the same concerns that drove the falls into June: Inflation remains high or is still rising depending on the country. For example, US headline inflation is still 8.3%yoy and core inflation at 6.3%yoy in August is still under pressure from rising services inflation. Headline inflation is 8.9% in the UK, 9.1% in Europe, 9.9% in the UK and an estimated 7.2% in Australia. Global central banks have become more hawkish noting that permanently high inflation will lead to lower living standards and the longer inflation stays high the greater the risk that inflation expectations move higher, making it harder to get down. As a result, they are committed to getting it back to target and have been flagging more rate hikes (eg with the dot plot of Fed interest rate forecasts around 1% higher than 3 months ago) and an implied tolerance for a recession in order to get it under control. Increasingly hawkish central banks are bad for shares in the short term for two reasons. First higher interest rates and make shares less attractive from a valuation perspective. Second, a recession would weigh on company profits. Recession is now almost certain in Europe and about a 50% probability in the US. In Australia the probability of recession is now around 40% (if as we expect the cash rate peaks around 3%, but if it rises to 4.3% as predicted by the money market then recession is probable here). Historically deep bear markets in US and Australian shares have tended to be associated with a US recession. Fears of an escalation of the Ukraine war – after Russia’s troop mobilisation, “referenda” to incorporate occupied areas into Russia and a threat to use nuclear weapons. Ongoing tensions with China and the approaching November US mid-term elections are not helping. A large fiscal stimulus in the UK has caused a surge in UK bond yields & plunge in the pound adding to fears of a crisis. While the new Government’s tax cuts and deregulation may have supply side merit the benefits of this tend to take years to become apparent and in the meantime the risk is that it adds to inflation and fears about runaway debt. We are in a weak period of the year seasonally for shares – with September being the weakest month of the year on average for shares and October known for volatility. This can be magnified when the trend in shares is down. As seen in the first half the year, tech stocks and particularly crypto currencies remain the biggest losers of monetary tightening, after being the biggest winners of easy money. Shares are oversold and on technical support at their June lows so could bounce from here. But the risks are skewed to the downside in the short term. While investor confidence is very negative, we have yet to see the sort of spike in put/call option ratios or VIX that normally signals major market bottoms. The RBA is fortunately starting to sound a bit more balanced and aware of the way monetary policy impacts with a lag, but the danger is that the Fed and central banks have become locked into supersized hikes based on backward looking inflation and jobs data, and a loss of confidence in their ability to forecast inflation at a time when they should be giving more attention to monetary policy lags. This increases the risk of overtightening driving a deep recession with earnings downgrades driving another leg down in share prices (after the first leg down which was driven by rising bond yields). A decisive break below the June low for the US share market could open up another 10% leg down with a similar flow through to Australian shares. It’s not all doom and gloom However, there is some light at the end of the tunnel on a 12-month view: Central banks determination to stop high inflation becoming entrenched is good news from a longer-term perspective as the 1970s experience tells us that the alternative would be bad for economies, jobs and investment markets. Producer price inflation looks to have peaked in the US, UK, China and Japan. This is consistent with our Pipeline Inflation Indicator which is continuing to trend down given falling price and cost components in business surveys, falling freight rates and lower commodity prices (outside of gas and coal). Some of the key components that initially drove higher inflation in the US are starting to slow with weakening growth … Read more

You may have heard about socially responsible investing – or possibly sustainable investing. Whatever the name, here’s what it means in practice. We spend a large part of our lifetime saving for retirement, with around 10 per cent of our pay packet heading straight for our superannuation fund. It’s little wonder then that we take a second glance at our super balance when the stock market takes an untimely dive. Yet it’s not our only concern these days. In addition to wanting a healthy balance, more and more of us are hoping that our hard-earned contributions are being put to good use – to address environmental concerns and support a better society. That’s where responsible investing comes in. Thanks to its holistic approach, many of us are well positioned to achieve both. Investing in the best of the best Responsible investing – also known as socially responsible, sustainable or ethical investing – takes into account a company’s financial performance as well as how it treats people, society and the environment. The underlying idea is that companies can generate a positive return for wider society as well as positive financial returns for an investor’s portfolio. How this is achieved in practice though can differ considerably. A case of avoidance The foundations of responsible investment lay in faith-based organisations who in the 19th century started to simply avoid investing in certain activities e.g. the Quakers and alcohol. Nowadays, it might be that an investor will exclude specific sectors from their investment portfolio that they consider unethical or otherwise misaligned with their values. This is otherwise known as applying a negative screen. At the same time, investors may wish to gain exposure to a specific sector if it upholds their particular values or ethics. The use of positive screens therefore ensures an investor’s portfolio has an exposure to business which is aligned to their values such as renewable energy or specific social benefits. While this may be problematic for superannuation funds to carry out given the diversity of their members, there’s an opportunity to tilt portfolios towards certain socially accepted principles. For instance, more and more funds are looking to include environmentally friendly companies in their investment portfolios in recognition of society’s growing concern around climate change. Incorporating ESG A more common practice is for investors to formally incorporate consideration of Environmental, Social and Governance factors into their investment decision making. For example, a company may be assessed on a whole swag of environmental issues, such as its carbon emissions and the degree to which it’s polluting the air or degrading the land. Then there are the social issues to consider. Among other things, these include the company’s working conditions and how committed it is to supporting its local community and customers. A company will also be judged on its corporate governance – essentially, how well the company is managed. This looks at factors like the diversity of the company’s board members, how much it pays its senior executives (and whether it’s justified) plus, very importantly, how transparent it is as a company. The idea is that identifying when these factors are materially important to the business, both as a risk or an opportunity enhances the investment decision. This can both help protect against risks such as unsustainable business models and also identify opportunities to invest in companies that have great business opportunities in solving problems. Ultimately this can result in both enhanced investment returns and more holistic outcomes. Getting active Another approach to responsible investing is known as active ownership or stewardship. One of the key pillars of the United Nations’-backed PRI (principles of responsible investing), it focuses on investors addressing any perceived failings in how a business is managed, whether through direct engagement with its Board of Directors, proxy voting, or other external advocacy. Direct engagement is where investors sit down with the company’s management and voice their concerns. MLC, for example, was one of a number of investors that approached Meta’s Facebook in 2021 about its newsfeed algorithm. There was concern that it was configured in a way that meant individuals were only four or five clicks away from violent content – or (in the case of Instagram) just a few clicks away from impossibly perfect lives that were detrimental to teenagers’ mental wellbeing. As a result of investor pressure, the company put 200 programmers on to reconfigure the algorithm and now releases a quarterly incidents report that monitors how much inappropriate content is picked up and banned before it goes viral. In a clear win, the number of such incidents has jumped from 12 million to 20 million a year. Next steps Super funds will usually adopt a variety of approaches to responsible investing. So, if you have a lifetime of savings in super, it’s a good idea to understand the approach your particular fund takes.       Source: IOOF    

It’s impossible to ignore the issue of climate change in 2022. And certainly, if you’re invested in the markets, you wouldn’t want to. One reason to pay close attention could be that you hope to invest in line with your beliefs and values, supporting those carbon-reduction and environmentally sustainable practices and solutions that will help make the world a better place for your children and grandchildren. But there’s another reason – one that holds weight from a purely financial perspective. The fact is, rising temperatures, climate-related policies and new technologies are presenting financial risks and financial opportunities. And while some are in the more distant future – such as the fate of ski resorts in a warmer world – others are nearly upon us. Think of the implications of Europe’s ban on new petrol and diesel cars by 2035. Or the rise in drought-tolerant crops in Australia. Avoiding risk and embracing opportunity are critical to the long-term health of your investment portfolio, and also to your super balance. Physical investment risk explained There are two kinds of investment risk when it comes to climate change. The first is the physical risk – the impact more frequent severe weather events can have on businesses and the economy at large. Beyond their capacity for physical destruction, fires and floods can disrupt a company’s vital supply chains. For example, many businesses in the Hawkesbury region of NSW ground to a temporary halt this year, cut off from transport links once more as the Windsor Bridge in Western Sydney was again blocked by flood waters. On a larger scale, the global pandemic has demonstrated just how vulnerable many international businesses are to an unexpected pause in essential supplies. That’s why it’s important for investors to consider the individual companies, whole sectors and entire countries that have the fortitude and adaptability to sidestep such issues – to survive and even thrive. Take Australia’s agricultural industry. There you will find farmers who have leased part of their land to a solar farm, their sheep grazing among the solar panels. On top of providing an alternative income, this approach is also increasing the quality of wool, according to early results. Transition investment risk explained The second kind of climate risk is known as ‘transition risk’. Perhaps more concerning in the short-term, it’s associated with transitioning to renewable forms of energy. This is becoming ever more relevant as many countries, including Australia, sign up to a net-zero emissions target by 2050. With this target just three decades away, the UN-supported Principles for Responsible Investment state that meeting it will require an immediate cessation of new gas and oil exploration, a rapid adoption of renewable energy and a huge shift in production methods and consumption patterns. That’s going to impact a lot of businesses, resulting in some clear winners and losers. For an investor, it will be a matter of assessing the likelihood of a company with an old business model becoming rapidly irrelevant or the very real risk of having stranded assets within an investment portfolio. Those that are wholly dependent on fossil fuels are clearly vulnerable – mining and electric utility companies being notable examples. But businesses and even sectors that are indirectly affected might also be left behind, including those that supply parts and services to these businesses. On the upside, any sector that is part of the large-scale deployment of enabling technologies, materials and services will be well placed to benefit from the rapid change to net zero. So too will be companies that take the lead in adapting to a carbon-constrained economy. Investing in the future In a world that’s rapidly shifting and adapting, there’s no doubt that the power of many will play a huge and vital role in our future success – both as investors and individuals.   Source: IOOF      

Australians lost a record amount of more than $2 billion to scams in 2021, despite government, law enforcement, and the private sector disrupting more scam activity than ever before, the ACCC’s latest Targeting Scams report reveals. The report compiles data from Scamwatch, ReportCyber, major banks and money remitters, and other government agencies, and is based on analysis of more than 560,000 reports. Reported losses to all organisations totalled almost $1.8 billion, but as one-third of victims do not report scams the ACCC estimates actual losses were well over $2 billion. Investment scams were the highest loss category ($701 million) in 2021, followed by payment redirection scams ($227 million), and romance scams ($142 million). “Scam activity continues to increase, and last year a record number of Australians lost a record amount of money,” ACCC Deputy Chair Delia Rickard said. “Scammers are the most opportunistic of all criminals: they pose as charities after a natural disaster, health departments during a pandemic, and love interests every day.” “The true cost of scams is more than a dollar figure as they also cause serious emotional harm to individuals, families, and businesses,” Ms Rickard said. Based on reports to Scamwatch in 2021, women reported the most scams but men lost more money than women, and men’s losses to investment scams were double women’s losses. In culturally and linguistically diverse communities, women had slightly higher losses than men. People aged 65 and over reported the highest losses, and reported losses steadily increased with age. In 2021, Scamwatch received record levels of reports and losses from Australians that may have been experiencing vulnerability or hardship. People with disability made twice as many reports compared to 2020, and their financial losses increased by 102 per cent to $19.6 million. The number of reports by Indigenous Australians increased by 43 per cent between 2020 and 2021, and reported losses increased by 142 per cent. People from culturally and linguistically diverse communities experienced an 88 per cent increase in losses last year compared to 2020. “The increasing number of reports by people experiencing vulnerability is a very worrying trend. Everyone from government, to banks, and digital platforms needs to do more to address this,” Ms Rickard said. “The ACCC is particularly wanting banks to match payee information in pay anyone transactions. This has been shown to have a real impact in countries that have done so.” ACCC research presented in the report shows that scams are almost ubiquitous in Australia today. Ninety-six per cent of respondents had been exposed to scammers in the previous five years, and 20 per cent had fallen victim. Of those who lost money, 56 per cent were unable to recover any of it.   Source: ACCC Scamwatch

Insurance works best when you have the right level of protection for your situation and as your life changes, so might your insurance needs. You should consider reviewing your cover whenever your situation changes, like: taking on a mortgage to buy a property having children getting married upsizing or downsizing your home getting a pay rise or take a pay cut starting a business experiencing a change in your health or lifestyle paying off your mortgage stopping supporting financially dependent children joining a new super fund that may provide automatic insurance cover These milestones mark important times to review your insurance, including the amount of cover you have and whether your beneficiaries (those who will receive your insurance in the event of your death) are up to date. How to review your insurance: Step 1: Read your insurance contract Refer to your product disclosure statement (PDS) and read it to fully understand what you’re covered for (death, disability or injury for instance) and compare this against what you’d ideally like to be covered for. Step 2: Check the insurance policy expiry date Check if your insurance policy has an expiry date, and if so, make note of when it is so you’re not caught off guard. It can be a good idea to set yourself a reminder a month or two before it’s due so you can contact your insurance provider ahead of time. Step 3: Know your beneficiaries An insurance beneficiary is the person, or people, who will receive your insurance payout in the event of your death. It’s important to make sure your beneficiaries are up to date so your money ends up in the right hands. Step 4: Check if you have enough insurance To help you work out the right level of insurance cover consider the following questions. How much money would your family have if you were to pass away or become disabled? Consider the amount of money you have in super, savings, shares and other assets, and existing insurance policies as a starting point. How much money would your family need if you were to pass away or become disabled? Consider the size of your mortgage and any other debts you have, as well as other costs such as childcare, education and day-to-day expenses you may be covering. The difference between these figures should provide some guidance on the amount of insurance cover you may want to have. However, you might need to compromise between what you’d like and can afford. Step 5: See if you have any other insurance policies Like many Australians, you may have insurance through super. So, it’s a good idea to check this against other policies you might have outside super. Then compare your cover, check whether you have any insurance double ups – if you have more than one super account with the same type of insurance, you may be paying for more insurance than you need. Something to note on your TSC (temporary salary continuance) insurance, you’ll most likely only be able to claim up to 75% of your pre-disability income, regardless of whether you have TSC cover within multiple super accounts. Step 6: Compare insurance providers If you’re not sure whether you’re getting the best deal, you might want to compare providers. Remember, there are other considerations to take into account aside from reduced premiums, such as what level of cover you get, any exclusions (like the treatment of pre-existing medical conditions) and waiting periods. Also keep in mind if you do cancel your insurance, you might lose access to features and benefits, and you might not be able to sign back up at the same rate or with the same level of ease. It’s also important to disclose your situation to your insurer honestly, or the policy might be invalid if you do need to make a claim. Step 7: Reduce or manage your insurance premiums If affordability is a major concern, speak to your super provider or insurer depending on what type of insurance you hold, to find out how you can manage your premiums without losing your policy. You might be able to: reduce the amount you’re insured for change how often you make a payment (If you don’t hold insurance inside super) adjust your waiting and benefit periods. Source: AMP