When we become more familiar with our super, we naturally value it more and see it rise in value as one of our most important assets.
For many working Australians, investing through superannuation is an effective way to secure their financial future in retirement. While you are working it is important to regularly review your super contributions to ensure you are saving enough to fund an enjoyable lifestyle once you enter retirement.
Maximising your super
The government provides generous tax incentives to encourage Australians to invest in super. The more you take advantage of these, the more super you’re likely to accumulate over time. For example, you might consider setting up a salary sacrifice arrangement with your employer. This will allow you to make super contributions from your pre-tax salary and could also reduce your income tax bill.
Depending on your income and family situation, you may be eligible for other benefits, such as the government co-contribution or a tax rebate when making contributions to your spouse’s super (both are subject to eligibility criteria). We can also show you how you may be able to save tax by paying for your life insurance through your super.
Some people find it difficult to know how much to contribute to super. In truth, there is no right or wrong amount, although there are limits (as required by legislation) to how much you can contribute each year. Our approach is to start at the end, and ask you what sort of lifestyle you want in retirement. The more extensive your plans, the more super you’re likely to need to provide sufficient retirement income. It also helps to know how long you plan to keep working and what other income-producing assets you have.
If you own a small- or medium-sized business, we can advise you on how to structure a corporate super plan that takes into account any salary packaging requirements and remuneration programs.
It is never too late to take control of your super. However, the rules are complex, so it is important to get expert advice to ensure you make the most of your superannuation savings.