Do you know where your employer's super contributions go?
Between your social activities and work, life might be getting pretty busy but it's still important to take some time out to think about your financial goals and what you can do to achieve them.
Your employer is required to pay 9.25% of your gross salary into an eligible super fund. But just because you don't see this money in your bank account each month it doesn't mean you should forget about it. It's still your money, so make sure it's invested the way you want.
The first step to taking control of your super is to choose which fund your money is being paid into. You can either choose your own super fund or use the default fund offered by your employer.
Once you've decided on a super fund, make sure you take advantage of the features and benefits your fund provides, like insurance or multiple product discounts. To help keep track of your super, most funds will offer online access to your account.
You don't have to use your employer fund if you don't want to. You can generally choose which super fund your employer contributions are paid into at anytime
Are you aware of ways you can boost your retirement savings while reducing your tax?
If you're in a position where you have some disposable income at the end of each month, there are things you can do to make the most of it and while it can be tempting to focus on the short term, using your disposable income now can help you start building for the future.
Making extra contributions to your super is one of the most tax effective ways to boost your account, while reducing your tax and that means more money for you in the future.
If you're an employee, you could use some of your pre-tax salary to make additional contributions to your super, over and above the super already paid by your employer. This is known as salary sacrifice and because these super contributions are taxed at 15% this is a tax effective strategy, especially if you're on a higher marginal tax rate.
If you're self employed and contribute to super, you may be able to claim your contributions as a tax deduction. While tax of 15% is deducted in the fund, the deduction could be used to reduce your assessable income and the amount of tax you have to pay.
Before you make salary sacrifice or personal contributions please make sure you don't exceed your contributions caps.
Contact us to help you with your contributions strategy, we'd be happy to help
Have you considered the investment options available to you through your super account? What about insurance?
Retirement might be the last thing on your mind - after all it's over 30 years away. But the choices you make now can bring a big impact on your future, so it makes sense to start planning as soon as possible
One of the most important things to look at when choosing a super fund is the investment options available. After all, how you money is invested will determine how quickly your super grows.
But your super isn't just about retirement. You can get benefits from your super right now, such as saving money on your insurance.
Do you know how many super accounts you have?
As your career progresses It's likely you've had more than one job, so chances are you have more than one super account.
Each time you start a new job a new super account gets opened for you. The problem with having more than one super account is that you're likely to be paying multiple fees and keeping track of your super is a little harder. Plus, you may be doubling up on things like insurance, which could be more cost-effective if you held them all in one fund.
So, by having all your super in the one place, it's easier to take control of your retirement savings and make sure your investments continue to meet your needs
The good news is that consolidating your super is simple
The first step is to find all your accounts, some of which may have been lost over many years.
You then need to decide which fund you want to consolidate your super into. It's important to consider whether it offers investment options that suit your needs, now and in the future. Also make sure you don't exit a fun that provides insurances you need without considering replacement cover