In this guide
For most of us, knowing whether we have enough retirement savings and what to do with our super once we leave the workforce feels like trying to fit together the pieces of a jigsaw puzzle.
There are so many different things to consider and there’s an awful lot of jargon to try to decipher.
One thing that makes this easier is a fair degree of financial literacy. Yet for many Australians, financial literacy is one skill they haven’t fully mastered and without it, navigating your retirement journey can be a lot harder.
Good to know
Financial literacy or capability is a general term used to describe your ability to understand and apply financial skills in your everyday life.
The OECD International Network on Financial Education defines it as a “combination of awareness, knowledge, skill, attitude and behaviour necessary to make sound financial decisions and ultimately achieve financial wellbeing”.
Financial literacy skills help you to master your finances and give you the confidence to make complex financial decisions – both outside and inside super. These include things such as choosing an appropriate investment option for your super, making extra contributions when you can afford it and deciding how much insurance to apply for through your super fund.
Challenge of a complex retirement income system
Planning your retirement income is always a tricky task, but if you lack basic financial literacy skills the task is even harder.
