Superannuation should never be a ‘set and forget’ strategy.
The start of a new year is a good time to review your circumstances, and perhaps set some new goals to help boost retirement savings.
With a few changes to superannuation that applied from 1 July 2014, it is important to understand how they may apply to you. The following are some considerations.
Making extra contributions
The general concessional contributions cap is $30,000 for 2014-2015 (up from $25,000 for 2013-2014). For people aged 50 and over, there is a higher concessional contributions cap of $35,000 for 2014-2015.
Salary sacrificing super
You may want to ask your employer about salary sacrificing super, or you may want to consider reviewing an existing arrangement with your employer.
Most superannuation funds have insurance options for Life and Total and Permanent disability, as well as Income Protection. Superannuation can be a very useful and tax effective way of funding your insurance needs and ensuring that you and your family are well protected.
Checking super savings
It is a good habit to check your superannuation balance regularly. In addition to getting to know your super better, you may also want to protect your super from identity crime. For example, you may want to change passwords for accounts that can be viewed online.
Consolidating multiple super fund accounts
You may want to consider consolidating multiple super fund accounts. This may help avoid paying multiple super fund fees, reduce paperwork, and make it easier to keep track of your superannuation.
Keep all your statements in a safe place, especially if you do need to maintain multiple accounts.
Professional and personalised advice should be obtained before implementing any financial strategy.
The friendly team at our Bendigo office are ready to assist with your Financial Planning needs.