To discuss your superannuation needs please contact a qualified Financial Adviser.
What is superannuation?
Superannuation often called super, is a way to save for your retirement. You build up super while you are working to make sure you can have a comfortable retirement.
Super is a tax-effective environment for your money; the account is held in your name, and both you and your employer can deposit money into your account. Your money will attract investment earnings, and when you reach your ‘preservation age’, you are able to start drawing on these funds.
Your employer must pay 9.5% of your salary into a super fund. This is called the Super Guarantee and it’s the law. The Super Guarantee will gradually increase to 12% in the coming years.
Why is superannuation important?
“Many of us will spend more than a quarter of our life retired, as people are now living until an average age of 86 years (if you’re male) and 89 years (if you’re female). Life expectancy is expected to rise to 91 for males and 93 for females by 2050.
So, you might need a lot more money for your retirement than you think. Unless you’re counting on a lotto win or growing your own personal money tree, super can help you enjoy your retired days by allowing you to maintain a good standard of living, which isn’t achievable by receiving just the Age Pension.”
Association of Superannuation Funds Australia (ASFA) [1]
How does superannuation work?
Superannuation is treated differently than most other savings. For most people, super will be taxed at a lower rate than a similar investment outside super. If you’re self-employed, you may be able to claim a tax deduction for personal contributions you make to super.
What your employer does
Have you ever wondered about the responsibilities of your employer when it comes to your superannuation? Understanding what your employer does in relation to your super is essential to ensure your financial security and retirement savings.
If you are entitled to receive superannuation, your employer is mandated by law to make regular contributions on your behalf. Currently, the mandatory contribution amount, referred to as the “Super Guarantee,” is set at 9.5% of your salary. This means that your employer is required to contribute 9.5% of your salary into a super fund at least every three months.
It’s important to note that the Super Guarantee is a minimum requirement set by legislation and designed to support your retirement savings. This guarantee aims to provide you with a solid foundation for financial security in your golden years. It is worth mentioning that the Super Guarantee will gradually increase to 12% in the coming years, allowing for even greater contributions towards your retirement savings.
Knowing that your employer is legally obligated to contribute to your superannuation fund provides you with peace of mind and reassurance that your financial future is being taken care of. These contributions, together with your personal contributions, play a significant role in building a healthy superannuation balance over time.
By understanding your rights and entitlements, you can actively monitor and ensure that your employer is fulfilling their obligations. Regularly checking your superannuation statements is a good practice to verify that the correct contributions are being made on your behalf.
Remember, your superannuation is a long-term investment in your future financial security. By familiarizing yourself with the actions your employer is required to take, you can take proactive steps to maximize your superannuation benefits and work towards a comfortable retirement.
So, take control of your financial future by staying informed about what your employer does and the Super Guarantee. This knowledge empowers you to make informed decisions, monitor your super contributions, and secure a brighter and more prosperous retirement.
What your super fund does
Have you ever wondered about the inner workings of your super fund and what it actually does with your contributions? It’s important to understand how your superannuation fund operates to make informed decisions about your financial future.
Once your superannuation fund receives your contributions, it takes on the responsibility of managing and investing that money. They offer two main investment approaches: a default strategy or one that you have personally chosen. The choice is yours, giving you the flexibility to align your investments with your specific financial goals and risk appetite.
However, it’s essential to note that various fees are associated with your superannuation fund. These fees can be categorized into different types. Firstly, there are general fees that cover administration, member services, and investment management. These fees are typically charged to cover the costs of running and managing your super fund effectively.
In addition to the general fees, super funds often offer optional extras that you can choose to include. These may include adviser fees for seeking professional financial advice tailored to your needs, and insurance premiums to protect yourself and your loved ones from unexpected circumstances.
It’s important to review and understand the fees associated with your super fund. By doing so, you can make an informed assessment of the value you are receiving for these fees and ensure that you are comfortable with the level of services and benefits provided.
Remember, your superannuation fund plays a significant role in helping you build and grow your retirement savings. By understanding how it operates, the investment options available to you, and the fees associated with the fund, you can actively manage your super to maximize your returns and secure a comfortable financial future.
So, take the time to familiarize yourself with the workings of your super fund and make informed decisions. Your financial wellbeing depends on it, and by staying informed, you can make the most of your superannuation and pave the way for a brighter tomorrow.
Your role
As an individual, you play a crucial role in maximizing the potential of your superannuation savings and ensuring a prosperous retirement. It is essential to actively monitor your superannuation payments and balance, as this empowers you to make informed decisions and optimize the performance of your hard-earned money.
This responsibility becomes even more vital for self-employed individuals, as they are solely responsible for making their own superannuation contributions. Taking charge of your superannuation ensures that you are actively investing in your future and building a solid financial foundation for retirement.
By staying vigilant and regularly reviewing your superannuation payments and balance, you can identify any potential gaps or areas for improvement. This proactive approach enables you to make strategic adjustments and seek professional guidance, if needed, to ensure that every dollar is working as hard as it can for your long-term financial well-being.
Remember, the decisions you make today regarding your superannuation can have a significant impact on the quality of your retirement. By taking an active role and staying engaged with your superannuation, you are better positioned to achieve your financial goals and enjoy a comfortable and fulfilling retirement.
So, embrace your role as a proactive superannuation saver, keep a watchful eye on your payments and balance, and take decisive action to make the most of your superannuation for a brighter financial future.
How can a certified financial advisor help?
How can a certified financial advisor help you unlock the full potential of your superannuation and make informed financial decisions? Well, their guidance and expertise are invaluable when it comes to navigating the complexities of superannuation, allowing you to better understand, grow, and manage your retirement savings.
Engaging the services of a certified financial advisor offers a plethora of benefits that go beyond what meets the eye. One of the key advantages is the consolidation of super funds. Instead of juggling multiple funds, a skilled financial advisor can streamline and consolidate them for you. This not only simplifies your financial landscape but also has the potential to save you on fees, ensuring that every ounce of your hard-earned money is working optimally for you.
But that’s not all – a certified financial advisor also excels in providing tailored investment options. By thoroughly understanding your financial goals and risk appetite, they can identify investment opportunities that are specific to your needs. This personalized approach ensures that your investments align with your objectives, resulting in better outcomes for your financial future.
Additionally, a certified financial advisor brings insight and expertise that can help you navigate complicated tax rules and regulations. By staying up to date with the ever-changing financial landscape, they are equipped to provide you with valuable advice on tax optimization strategies, ensuring that you are taking full advantage of available incentives and deductions.
Furthermore, a financial advisor can assist you in crafting a comprehensive retirement plan. They can evaluate your current financial situation, project your future retirement needs, and develop a roadmap to help you achieve your goals. This holistic approach takes into consideration factors such as your desired lifestyle in retirement, anticipated healthcare costs, and potential legacy planning.
Lastly, a certified financial advisor can provide peace of mind. Knowing that you have a professional by your side, guiding you through the complexities of superannuation and making informed financial decisions, can bring you a sense of confidence and security. You can rest easy knowing that you have taken the necessary steps to secure your financial future.
In conclusion, a certified financial advisor is an invaluable partner in helping you unlock the full potential of your superannuation and making informed financial decisions. Their expertise in streamlining super funds, providing tailored investment options, navigating tax complexities, crafting retirement plans, and offering peace of mind all contribute to a brighter and more secure financial future for you.
How to find your lost super?
If you think you may have lost track of your super then you have access to services to help you find your lost accounts.
This service searches the Lost Members Register and other ATO records, such as ATO-held super accounts and unclaimed super money, for your lost super accounts. You can also use the phone service (13 28 65).
You can use the ATO’s myGov service to see details of all your super accounts, including any you have lost track of or forgotten about. You will need to create a myGov account and then link your account to the ATO service.
- Previous employers
Ask your previous employers for the names of the super funds that received contributions on your behalf.
[1] http://www.superguru.com.au/retiring/how-much-super-will-I-need/