Should I put extra money in my super fund weekly? I am worried that in 25 years when I do retire my super fund will no longer be around and all that money will be lost! Anna, via email

One of the biggest mistakes people make when it comes to their superannuation is assuming that 9 per cent employer contributions will be enough for a comfortable retirement. If you settle for 9%, you’ll end up with around half of what you’ll need in order to maintain the same level of lifestyle, maybe not even that much.

The average person retires with around $140 000 in their super fund for men, and just $70 000 for women. If you are planning to retire on about 75% of your current income, that means you’ll need to contribute about 15% of your salary each year for your entire working life.

The point is, if you want a comfortable retirement it’s absolutely necessary to make extra payments into your super, because the compulsory amount going in is not enough.

When making extra contributions, it’s a good idea to set up a salary sacrifice agenda, where a portion of your pre-tax salary goes straight into your super fund. Not only are you growing your nest egg, you’re reducing your taxable income and therefore the amount of tax you pay.

Super contributions should be a part of your weekly or monthly budget. Put in as much as you can afford, but even throwing in as little as $20 each week will make a huge difference to the amount you end up with when you stop working.

Remember that there are government limits on the amount of your salary that can be sacrificed to super; currently it’s $50 000 a year for under-50s and $100 000 for over-50s.

Superannuation is the biggest investment most people will make, and there are so many choices you can make. If you are concerned about the security of your retirement money, go with a large, solid balanced fund with a diverse portfolio as these are usually less risky and survive unstable economic conditions the best.

It’s unlikely that government regulations will change dramatically when it comes to super, because it’s Australia’s only forced savings plan, which makes it vital for a small country like ours. So provided you invest wisely and conservatively with your super, there should be no reason to worry about retiring with an empty bank account.

For information on different super funds and their returns, visit the websites of Canstar Cannex or SuperRatings.

Get the Kochie Blog straight to your Facebook or Twitter

Other articles I know you'll love:

To Holiday or Not To Holiday

Ireland's economic woes - and what it means for the global economy

18 Core Financial Foundations