The app increasing your super while you spend

A new phone app is helping people get big returns on their retirement savings, and Nine News has revealed how you can start earning NOW with as little as five dollars.

A new app called Raiz is helping consumers use their spare change to boost retirement savings through an easy-to-manage investment account. And Raiz user Nathan Martyn said he has already saved hundreds.

“I wanted to start paying attention to where my super was and how it was likely to generate over time,” Martyn told Nine News.

Say Martyn uses his debit card to buy a coffee for $3.50, the figure is rounded up to the nearest dollar. In this case, it would be $4 and amount rounded up would be 50 cents. This 50 cents would then go into his online Raiz account where it’s invested into a share portfolio.

“I’ve had over the last six months about $500, which has generated about a 10% return,” he said.

It’s forced savings that add up quickly, and requires only $5 to get started.

However, the online app is also helping boost your superannuation.

Superannuation money is invested into the same funds as the investment account where your spare change goes. You then choose whether to invest in lower or higher risk funds, and can see how it is performing every day.

“You have a Raiz invest account and with the push of a button your details are transferred over to create a super account,” said Raiz chief operating officer Brendan Malone.

“It brings all your super into one place, into one investment app where you can see the opportunities.”

Users can withdraw money from the app, whenever they like or just let it grow side by side along with their superannuation and have a bigger nest egg, when retirement is reached.

Canstar Blue superannuation expert Joshua Callaghan said Aussies should take the time to review their superannuation fund.

“One of the big things about superannuation is just understanding exactly what you’re being charged and also what you’re getting back in, by way of returns,” he told Nine News.

These days there’s so much information online that helps you understand whether that’s good or competitive or providing value.”

One thing to remember — people should always check for hidden fees before considering changing superannuation funds.

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