So, you’re under forty. Should you be thinking about your superannuation? The answer is yes.
I’m also under forty, and I think it is very important for us all.
So, what can we do to boost our retirement savings?
Well, here are 3 ways to boost your super.
1: Consolidate it into one account
Do you have lots of super accounts? You may be doubling up on fee’s. Many super funds charge fixed admin or member fee’s. If you hold more than one of these, then you are doubling up. That money should be working to your retirement, not disappearing in unnecessary fees.
2: Make extra contributions
Right now, your employer should be paying 9.5% of your income into your super account, that will eventually rise to 12%. This may not be enough. You have options to add to this and you can receive a tax deduction. There are 2 ways. Firstly, you can set up a salary sacrifice arrangement with your employer. This means that you can tell them how much extra you want them to pay to super, let’s say $100 per week. You don’t pay your marginal tax rate on this amount.
Secondly; you can make lump sums into your super and claim a tax deduction. This helps if you get a lump sum or a bonus, you can claim a tax deduction on these amounts.
In both cases you need to stay under the concessional contribution limit of $25,000 pa (that is your employer and your own concessional contributions)
3: Pay attention to it
Super is your money, you need to pay attention to it. Where’s it invested? What is the strategy? Are your employer contributions actually getting paid? Taking some time to get advice and pay attention to your super can make a huge difference.
You’re never too young to think about your super and your retirement.
Got any super questions? Get in touch email@example.com
For details, licensee information and disclaimers please see www.smarthappymoney.com.au
Financial Advisor - Smart Happy Money
Given the complexity of Australia’s financial system, financial planning is more important now than ever before. Ben has 17 years’ experience in the advice industry. He has a passion, drive and commitment to ensure clients receive quality advice helping them to achieve their goals through careful planning, coaching and education.
Not only is Ben an experienced financial advisor, he is also a father to 3 wonderful kids. He understands the stresses of family life associated with mortgages, budgets and the balance between work and family commitments. This is why he is so passionate about helping families to achieve, not only their financial goals, but lifestyle goals as well.