superannuation
Superannuation may become one of your most valuable assets in retirement, so it is worth paying attention.
If someone asked you for 11% of your salary each pay cycle would you give it to them? If you did, wouldn’t you want to know what they were doing with your money?
There are many ways to invest in superannuation; industry funds, retails funds and self-managed. All of these options have different costs, features and benefits and it is worth considering which option would suit you the most. Having the right structure for your superannuation is important throughout your working life and into retirement.
Superannuation provides tax effective ways to save for your retirement. Understanding how to apply these rules to your superannuation is also important.
What is superannuation?
Superannuation is part of your salary. Most people’s superannuation account will start when their working life begins, as your employer is required to make contributions for you.
The aim of superannuation is to put money away so that it provides an income in retirement. Superannuation can be a good long term savings option as it has a low tax rate. Superannuation can become an integral part of your long term financial well being.
What outcomes are we trying to achieve when looking at superannuation?
Since 10.5% of your salary is automatically set aside to Super by your employer, we want to make sure that the growth you achieve from your Super Fund’s investments are in line with your goals.
Different Super Funds have different investment strategies, different track records and different fees and charges involved. By looking at your current Superannuation, we want to ensure:
You are not missing any of your Super, and it is all in the one place
The funds your Super invests is performing in line with the industry
The strategy your Super is invested in is appropriate for your retirement goals
That the type of fund you are with offers you the most benefits from both a long term and taxation point of view
That your contributions (both SCG and any additional contributions) are aligned to your retirement goals
That your Death and TPD (as well as any other insurance options offered by your Super Fund) are appropriate for your situation
questions clients always ask about super
There are many superannuation funds to choose from. The choices available make it more difficult to determine if you are in the right fund.
As everyone wants to achieve something different for their retirement there is no one fund that is right for everyone.
Comparing funds can be a time consuming process and it is often difficult to find data that give a like for like comparison.
Expert advice may assist in determining the direction you should take.
how do I know i am with the right super fund?
Maybe. Everyone is different and the appropriate super contribution varies.
You can make contributions in a number of ways that can be honestly quite confusing. Salary sacrifice, personal concessional contribution, personal non-concessional contributions, spouse contributions, downsizer, first home buyers contributions – each option has pros and cons that depend on your personal tax situation to determine what option is best for you.
When we look at Super, we also take into consideration your financial goals versus any tax benefits versus long term financial benefits to determine if extra contributions are appropriate in your situation.