Super decisions – as you’ve worked over the years, you’ve grown your super so that you can retire and live the kind of lifestyle that you’ve earned. But as your super has been sitting there over the years, are you certain that you’ve done everything in your power to maximise it so that you can take full advantage?
Know the tax advantages that you may qualify for. Beginning in July of 2017, can make contributions (concessions) to their supers in addition to the compulsory contributions made by the employer. The government in this case is helping you grow your super, so take advantage. You can also decide to make a salary sacrifice to grow your super even more and salary sacrifices are taken pre-tax, which means you’re paying taxes on a lower amount of income.
If you’re getting close to retirement age, or the time in which you want to retire, it may make sense to make after tax contributions to your super. You will want to consult with a qualified financial planner to ensure this is the right decision for you, but you can avoid the contributions tax, which does have advantages of its own.
One mark that many Australians miss when saving for retirement is not combining their supers. Over time you’ve probably worked more than one job and therefore have more than one super. With numerous supers, you are more than likely paying fees and other administrative costs for each account. These costs are unnecessary and can be reduced if you combine your supers.
If you earn less than $51,813, you may be able to access a government contribution to help. If you can contribute $1,000 to your super (non-concessional), you may be able to get an additional $500 contribution from the government. While it may not seem like a lot now, that money will add up over the years and grow.
Review the amount and terms of your life insurance cover included with your super. Having life insurance cover in place is essential no matter what stage of life you’re in. What goes unnoticed though is that as you age, your insurance cover needs will probably also change. What was once adequate may not be anymore. We recommend having your cover checked every 12 – 24 months to ensure you are fully protected.
Have more questions or need additional information regarding how to intelligently save for retirement through your super? Contact Ricarmo Financial Group today.