How to BOOST your superannuation

(and take advantage of the tax incentives on offer)

  •  this is your freedom years savings account! 
  • Disclaimer…..This information is provided as a thought provoking resource for research by you and in no way is this provided as financial or investment advice.   Please consult your relevant and appropriate advisor before making any financial life affecting decisions.
  • Compiled by Susanna Philbey.  

How your superannuation is worked out by your employer –

as a full-time wage earner… a basic example only

Paid to tax office – est. $   200.00        by employer

Paid to employee            $1,000.00       by employer

Gross (taxable) payment –  $1,200.00  per week

Paid to super company via ATO @ 9.5% of gross @ June ’20 $   114.00 per week    by employer.

$1,314.00 per week

Paid to Return to Work/SafeWork @ est 4% of gross + super $     52.56 per week   by employer

Total wage package for employee $1,366.56 per week

*Different ways of this basic principle are paid in salaries, enterprise bargain agreements etc.

*Excluding payroll tax etc.

Perhaps you could make this a side-project that you do over time…… 

……..cross off sections when completed.

Action steps……

  • Search for lost super accounts from previous working relationships.
  • Check that you have and/or consolidate all your super accounts into one account.  

This could save on fees and charges costing your savings. Check for exit or termination fees, and any insurance cover that may be affected.

  • Know how much super you have accumulated.    $………………………………
  • Research how your super is invested, and perhaps change to an investment level that suits your requirements.   

A younger person might be able to take a more riskier investment level than an older person looking for a stable income in retirement. e.g. select growth rather than conservative.

What level do I have my super invested in?…………………………………………

  • Research what companies your super company has invested in.  Are they

agreeable with your ethical standards?

What companies is my super invested in? ……………………………………………………….

…………………………………………………………………………………………………………

………………………………………………………………………………………………………….

  • Contributing to salary sacrificing (a before tax super contribution).

If the arrangement involves receiving super contributions (pre-tax) in lieu of salary or wages, the contributions are classified as employer super contributions (rather than employee contributions) and are taxed in the super fund, usually at a lower rate.

  • Making a personal tax-deductible contribution. 

You may be able to claim a tax deduction for personal super contributions that you made to your super fund from your after-tax income.

  • Making spousal contributions.

You may be entitled to a tax offset if you made contributions to a complying superannuation fund, on behalf of your spouse.

  • Check out whether you’re eligible for a government contribution.

If you’re a low or middle-income earner and make personal (after-tax) contributions to your super fund, the government may also make a contribution (called a co-contribution).

  • Make regular or once-off extra contributions if you can, especially if you are in a high tax margin.

This is your long- term savings account!

  • If you are self-employed make regular contributions, even if it is only a small percentage.

You deserve your super payments from your business!

  • Check out the costs, admin fees etc. of your super fund.

Costs/admin fees etc. = $ ………………………………………….

On average, super members in the default investment option pay between 0.94% to 1.28% on their account balance in fees, depending on their age and super balance.

  •  May 18, 2020 

www.canstar.com.au › superannuation › fees-explained

– Research alternative super companies to compare.

– Know what your super investment is making for you per year in interest

 ………%

– Check out whether your superannuation company has your correct and relevant beneficiaries noted on the policy and/or how this correlates with your will.           Yes/No

– Check out whether it would be beneficial to move to a Self- Managed Super Fund (SMSF).             Yes/No

A suggested super balance to start is estimated at $500,000 due to the fees involved.   You can manage this fund totally yourself, or with the support of a superannuation or accounting company.

– Know an estimate of how much you will need at retirement age of 67 Years. 

According to MoneySmart, one way to estimate how much you’ll need is to use the two-thirds rule. This suggests you will need approximately two-thirds of your current income each year to maintain the same standard of living in retirement.  This is presuming that you own your home, are healthy and not looking at a ‘lavish’ lifestyle!

– Make sure you are being paid your super entitlements by your employer and are getting your super statements regularly.               Yes/No

– Gather and file your super statements and back up the information.

Done:   Yes  date………………./No

– Do this super checklist every couple of years, or every time you change jobs or super company.

Please…when it comes to your money and your future, know your figures as best you can and be in charge of your own future investment.

You have the choice and control!

And perhaps think about the fact that maybe ‘some’ of the financial/super advisors have their own business, or work for a business, that may collect commission from your savings to make their income (fair enough)…and how that may affect their strategy advice…with your money..

Disclaimer…..This information is provided as a thought provoking resource for research by you and in no way is this provided as financial, legal or investment advice.   Please consult your relevant and appropriate advisor before making any financial life affecting decisions.

Compiled by Susanna Philbey, Life Directions Planner.www.susannaphilbey.com.aususanna@susannaphilbey.com.au.   August 2020.    A picture containing drawing

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