Here are our 3 Top Tips to get the most out of your super. It’s easier than you think!
- Consolidating Super Funds – Are you richer than you think?
How many casual, part-time or full time positions have you held since joining the workforce?
With every job you have had your employers would have been contributing to a superannuation fund. If you didn’t have a nominated fund, then your employers may have started up a new fund for you, meaning you could have multiple superannuation funds.
If you have more than one superfund you are more than likely paying more fees than you need to, and possibly have more than one insurance policy which means even more expense. Paying unnecessary fees is probably not the best plan for your retirement fund.
By seeing a Reputable financial Planner, they will be able to assist you with finding and consolidating all your super funds into one fund that is suitable to not only your current, but also future financial plans. By moving all your funds into one can definitely help you feel instantly richer!
- Life Insurance – can your family survive without you?
When we think of super funds, we think of retirement, but did you know that your superannuation fund may contain a life insurance policy for you?
Ok, I know you think superannuation isn’t sexy and who wants to talk about death or disability? But at some point you have to… you owe it to your loved ones to ensure that you have adequate cover for your bills, personal loans, mortgage and to be able to allow then to have their everyday needs met once you have gone.
The Cool Bit… by paying life insurance out of a super fund means it doesn’t affect your hip pocket. You don’t get another monthly or annual bill you have to pay because your super fund covers it. By the way, these premiums can be met with salary sacrifice contributions, and are generally a way to improve your tax position.
Did you know that there are other insurance policies you can take out through your super fund? Income protection and Permanent disability covers are usually available also.
A reputable Financial Planner can assess you current insurance cover, knows the right questions to ask to figure what type of personal insurance you need and will give you options. Once you have decided on the cover you want they will be able to set it all up for you, so you don’t have to worry about it.
How easy is that, especially when you get peace of mind that you have done the right thing so if something unfortunate happens you and your loved ones will be looked after.
- Get Your Free Money from the Government
Yes, the Federal Government is giving away money to anyone who makes an after tax contribution to their superannuation fund, and who earns less than $50,454 a year (for the 2015/2016 financial year).
This co-contribution scheme for 2015/2016 financial year means you will receive a tax-free super contribution from the Federal Government to your superannuation account. For this to happen you are required to meet a specific criteria.
To be eligible for the super co-contribution you have to be able to answer yes to the following;
- You made one or more personal contribution to your super account during the financial year
- Your total income for the financial year is less than $50,454
- 10% or more of your income comes from an eligible employment related activities, or carrying on a business, or a contribution of both
- You were less than 71 years old at the end of the financial year
- You did not hold a temporary visa at any time during the financial year (unless you are a New Zealand citizen or it was a prescribed visa)
- You lodged a tax return for that financial year
If you meet the above criteria and earn $35,454 or less during 2015/2016 financial period the Federal Government pays 50 cents for every dollar you contribute to your super fund after tax, up to a maximum of $500 a year.
For example, if your income is less than $35,454 and you make a $1,000 contribution to your super fund the Government will deposit $500 into your super fund. If you make a $500 contribution the government will deposit $250 into your super fund.
If you earn between $35,454 and $50,454 the government reduced their contribution by 3.33 cents for every $1 you earn over $35,454 for the financial year 2015/2016. For example, if you earn $40,000 and you make an after tax contribution of $1,000, the government will reduce their maximum contribution of $500 to $315.
The best thing for you to do this financial year is to see an Expert Financial Planner to ensure your super is set up to suit you and your family’s needs.
Once you have meet with an Expert Financial Planner they should review your superannuation structure every 12 to 24 months, and contact you to ensure that though life’s changes your superannuation and life insurance suits your current and future needs.