Saving for the future
Superannuation or ‘super’ is a way to save for the future and likely to be one of your biggest investments. It’s designed to encourage you to save for your retirement and help support your lifestyle when you stop working. For many Australians, it is the key to a secure and financially independent lifestyle in retirement.
How does your Super grow
Three things primarily contribute to the growth of your super;
- Employer Contributions – Super is partly compulsory in that employers must contribute the standard rate of their employees’ salary into a super fund
Investment Returns – Your money doesn’t sit idle – it’s invested. Your account balance will fluctuate but over time it should grow
Personal Contributions – You can put money into your super yourself
As you get closer to retirement, the importance of your superannuation becomes much clearer. You’ve got some decisions to make which can affect how and when you get access to your super.
- Are you ready to completely retire from the workforce?
- Do you want to reduce to part-time work?
- Do you want to take some or all of your super as a lump sum?
- Will you qualify for Centrelink benefits, such as the age pension?
Maximise your super
Everyone’s idea of how much money they’ll need in retirement is different. As super is a long term investment where all earnings are reinvested and any returns compounded, the earlier you begin making contributions, the more effective your super will become in retirement.
You can also grow your super by making one-off contributions from your after-tax income. The Federal Government also offers incentives and financial assistance to help you grow your super e.g. Government Co-Contributions and Spouse Contributions.
Salary sacrifice involves drip feeding regular amounts into your super from your gross earnings (your pre-tax income). Salary sacrificing can make a surprising difference over time. There are limits on the amount you can salary sacrifice each year depending on your age and it’s important to remember that your employers’ contributions count towards your pre-tax contribution limit. We can provide advice on a salary sacrifice strategy for you taking into consideration tax implications and current superannuation laws.
How we can help
We can provide you with advice on the most appropriate super platform and level of super contributions for you. We can review your current superannuation in relation to your goals and individual circumstances as well as the insurances held inside the super fund. Once we have an understanding of this, we can advise you on appropriate strategies to help you achieve your financial goals.
Make an obligation-free appointment today with one of our financial advisers to discuss your Retirement Planning or ways you can boost your Superannuation.
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