Why have superannuation? The superannuation choices you make today will help shape your lifestyle in retirement. We can help you get your superannuation sorted now, so you maximise your superannuation savings for when you retire. So let’s get into the benefits of a superannuation.
What is superannuation?
Super, or superannuation, is important because the more you save, the more money you will have in retirement. Super is a long-term investment which grows over time. For most people, your super begins when you start work and your employer starts paying a percentage of your salary into a super fund account for you.
Your super fund invests and manages this money for you until you retire.
Why you need to manage your super?
The earlier you learn about what you are entitled to, what your employer needs to pay, and limits that apply, the better off you will be when you retire. Adding a little extra will help your super grow over your whole working life.
What you may need to do?
At different times in your life there are important decisions you can make that will greatly impact your retirement savings. From choosing the right investments and increasing the amount you put away, these are a couple of decisions you can make to help maximise your superannuation.
Starting your first job
For most people, your first job is where your super will begin, and you will need to make some decisions to get your super started. Most people can choose the fund their superannuation goes into. You may ask why have a Superannuation? Especially when it’s your first job. Due to compounding interest, the more early you start, the better it is.
Changing jobs
When you change jobs, if eligible, you will again be given the option to choose your own super fund. This is a good time to review your current super fund along with your investments.
Keeping track of your superannuation
You may be at a point where you are happy with your current super fund and feel that there is no further action for you to take. However, there are occasions where there may be super being held for you that you don’t know about, for example, if it has been lost or forgotten about.
You can log in to ATO online services through myGov to keep track of your superannuation. You can see the superannuation accounts held for you, and whether we are holding any super for you. You can also consolidate these into your preferred super account. Keeping track of your super will help you maximise the amount available to you when you retire.
You should also regularly check:
- Your payslips and super fund statements – make sure your employer is paying the right amount of super for you
- Your super statement – track your super and see how much you are paying in fees and charges
- For options to add more money to your super and any limits that apply
Adding to your super
Making extra contributions is a great way to boost your retirement savings. It could also help you reduce your tax. You may have different options depending on your age, how much you want to put in and your super balance.
Some of the main ways you can personally make extra contributions include:
- Arranging with your employer to make salary sacrifice contributions. This may also reduce your overall taxable income
- Making personal super contributions
- Making a downsizing contribution into super if you are selling your home and are 65 years or older
Before you make decisions about your super, you need to understand what’s best for you. This will depend on your income and personal circumstances. It’s important to consider any consequences of making super contributions as too much super can mean extra tax.
Accessing your super early
You can generally only withdraw your super when you reach retirement. It’s illegal to access super early without meeting a condition of release. Fees and penalties will apply for doing so. Be cautious of promoters and scammers who claim to offer early access to super and may ask for your personal information.
How can we help?
If you have any questions or would like further information or you are seeking property tax advice, please feel free to contact our office via email –info@investplusaccounting.com.au or phone 02 9299 7000 to either speak with someone or arrange a time for a meeting so we can discuss your requirements in more detail. You can arrange a free 15 minute no obligation chat to discuss your options. Please arrange an appointment with our office by clicking here
General Advice Warning
The material on this page and on this website has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained on this page and on this website is General Advice and does not take into account any person’s particular investment objectives, financial situation and particular needs.
Before making an investment decision based on this advice you should consider, with or without the assistance of a securities adviser, whether it is appropriate to your particular investment needs, objectives and financial circumstances. In addition, the examples provided on this page and on this website are for illustrative purposes only.
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