Top 10 superannuation tips for 2015
It’s a great idea that each year you review your personal retirement strategy. Check out the following tips to keep your super working hard for you this year.
1. Check on your employer’s contributions – If you’re working, most employees earning more than $450 per month should be receiving superannuation contributions from their employer into their super fund. Contributions of 9.5 per cent of salary must be made by the employer at least quarterly into a fund of your choice. If you don’t nominate a fund, your super will be paid into a default fund, chosen by your employer.
2. Topping up your super – Wherever possible, and depending on your individual circumstances, you should consider making additional contributions to bolster your savings. Small, regular additional contributions to your super can make a huge difference to your retirement savings over the long-term.
3. Consider salary sacrifice contributions – Additional contributions can often be made tax effectively by your employer through salary sacrifice arrangements. Your employer can also make additional after-tax super contributions as directed by you and you can make additional contributions directly by contacting your super fund.
Related link: Superannuation tips everyone should know
4. Consolidate your super accounts – Multiple fund accounts mean multiple fees. Consolidating super accounts into one can help reduce the total amount of fees being paid. Multiple accounts can also increase the risk of losing track of some of your super.
5. Where to find your outstanding super – The Australian Taxation Office offers a free online tool called SuperSeeker to help you keep track of your super, find any lost super accounts and help you consolidate multiple super accounts. Some funds like Equip offer a free service to help members find lost super.
6. Consider a self managed super fund – SMSFs can be a great retirement savings vehicle, particularly for active investors looking for greater control and flexibility with their super. However, managing your own super comes with responsibility and knowing and understanding the rules is important. To find out more about what’s involved, check out the ASIC MoneySmart website for the pros and cons of this option.
7. Find out how much money you’ll need for retirement – Accountants and financial advisers can assist in working out how much money you will have in retirement. However, if you want to find out some basic information on your own and access some savings calculators, theASIC MoneySmart website is a great starting place.
8. Professional help can be worth its weight in gold – Superannuation can be confusing and you don’t want to get it wrong. The ASIC MoneySmart website is a great place to start for reliable information. However, you might also look at the services of a certified accountant or financial planner to help ensure your financial decisions are sound ones.
9. Make sure your investments suit you – Personal circumstances from a lifestyle, health and financial perspective are constantly changing. Make sure you review your super regularly to ensure your investments reflect your current and future needs as closely as possible.
10. Share your super details appropriately – Involve your partner in your financial planning, or ensure they know about how you’ve set things up. And make sure your super fund has all your contact details, including email and phone. A good fund will alert you to opportunities to make the most of your super.
Related links:
Six retirement books everyone should read
A guide to reviewing your super
What should I do with my superannuation?