Break superannuation down to its simplest form and it is a savings account for your retirement which 9.5% of your salary is paid into.
But unfortunately, superannuation isn’t so simple.
You need to choose who entrust to look after your money, decide how you want that money to be invested and wade through the countless legislative changes that will happen over your working life.
For many, superannuation is ‘too hard’ so they hope that once they retire there will be enough to survive on, and if not the government will pay for their retirement through the Age Pension or maybe even rely on the death of loved ones to receive an inheritance.
The fact is that even if you can figure out how to maximise Age Pension entitlements it only provides around 25% of average weekly employment earnings, which for many won’t be enough to live in retirement the way they would like.
The best way to see how your retirement savings are currently tracking, and find out what you could do now to increase your superannuation or government benefits for retirement, is to speak to a financial adviser. We can help you set realistic goals and put a plan in place to achieve them.
For more information on superannuation we have a number of blogs that explain different aspects to superannuation:
- The pros and cons of Self Managed Superannuation Funds (SMSF)
- Busting the $1 million retirement myth
- How to avoid common SMSF mistakes
- Home and away with superannuation
- Transition to retirement still a smart move
- Myth busting superannuation
The following financial strategies illustrate the potential benefits of implementing various superannuation strategies.
Sacrifice pre-tax salary into superannuation
Explains how contributing pre-tax salary, wages or a bonus into superannuation could help clients reduce their tax and invest more for their retirement.
Make tax-deductible superannuation contributions
Explains how making a personal superannuation contribution and claiming the amount as a tax deduction could help clients to pay less tax and invest more in superannuation.
Contribute to superannuation and offset capital gains tax
Explains how contributing to superannuation and claiming a portion of the contribution as a tax deduction could enable clients to pay less capital gains tax and increase their retirement savings.
Top-up your superannuation with help from the Government
Explains how making personal after-tax superannuation contributions could enable eligible clients to qualify for a Government co-contribution and take advantage of the low tax rate payable in superannuation on investment earnings.
Boost your spouse’s superannuation and reduce your tax
Explains the potential benefits of making spouse superannuation contributions and other ways to grow a spouse’s superannuation.
Upsize your superannuation with downsizer contributions
Explains how people aged 65 or over can make additional superannuation contributions of up to $300,000 per person from the proceeds of the sale of their home from 1 July 2018.
Convert business capital into tax-free retirement benefits
Explains how eligible small business owners can take advantage of the CGT small business concessions to manage tax and contribute more money into superannuation.
Top up your income when cutting back work
Explains how starting a transition to retirement pension could help clients who want to scale back their working hours in the lead up to retirement to replace their reduced income.
Convert your superannuation into a tax-effective retirement income
Explains how starting an account based pension could enable clients to receive a tax-effective income and make their savings last longer.