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Your superannuation is your long term savings plan for retirement and it’s a vital piece of your financial plan. Are you making the most of your superannuation?
Setting up an effective super strategy now will allow you to reap the rewards come retirement.
Ricarmo Financial Group are passionate about superannuation and helping our clients achieve the best possible outcome for their retirement.
In this article, we have outlined some potential areas you should be aware of surrounding your super.
Knowing your overall goal will make the process of tackling your super now easier. The earlier you start, the easier it will be to ensure you have adequate funds to live the retirement lifestyle you have always dreamed of.
Jot down some ideas of how you would like your retirement to look. Include an estimate of how much it will cost you to achieve this. Keep this figure in mind when speaking with a Ricarmo Superannuation Specialist.
In Australia, we have Super Guarantee that means if you are earning at least $450 per month your employer must contribute at least 9.5% of your income. This amount is paid at a minimum quarterly to your nominated super fund. Double check your superannuation statements to ensure that your contributions are being paid.
Without your TFN your contributions are taxed at a whopping 49% instead of the standard 15%. It also means you won’t be able to make after tax contributions. Save on tax by ensuring your TFN is on file.
Many Australians have multiple super accounts, meaning that they are paying multiple sets of administration and investment fees. These fees, in most cases, are a flat fee charged for each super fund. You can see if you have two, three or four funds, the fees add up very quickly. These fees are cutting into your super balance and are costing you money in your retirement.
Along with admin fees, you are most likely paying a life insurance premium. Multiple superannuation accounts equals multiple premiums. Use our quick and easy Find My Super service to locate your accounts and let a Ricarmo specialist combine them for you.
After 12 months, if your super fund can’t contact you they are considered ‘lost’ and your money will be held by the ATO. It’s vital you contact your super fund regularly to keep your details current, particularly if you have moved house, changed jobs or your name.
Each super fund comes with minimal life insurance cover. As mentioned above, the premium is automatically deducted from your super balance. However, the cover provided is generic in nature and might not be enough cover for you and your family.
We recommend speaking to a Ricarmo superannuation and insurance specialist to ensure that your super and insurance is working as hard for you as possible. As your situation changes regularly it’s worth having a review at least every 12 months. Contact Ricarmo today.
