News & Information
7 Tips to Maximise Your Super
With the constant changes in legislation affecting superannuation, it can be difficult to keep up with the changes affecting you. We have prepared a summary of our 7 tips to maximise your Superannuation. The 2017-18 financial year saw a big cut in contribution caps for both after-tax contributions and before-tax contributions. We also saw the introduction of a new limit on super amounts transferred into pension phase, as well as a few other changes. While we can’t control what legislation changes, there are things you can do to ensure you’re taking the right steps towards maximising your super.
1. Make sure your super fund hasyour Tax File Number
If have not provided your super fund with your tax file number your employer’s super contributions and your personal contributions will be taxed at 47% as opposed to the standard 15%.
You won’t be eligible for the super tax refund that is paid to Australians earning less than $37,000.
2. Find out how many super funds you have
If you’ve worked more than one job in your lifetime it’s possible you have more than one fund. If there has been no activity in your Superannuation for a period of 12 months, the manager could send your money to the ATO where it will sit until you claim it. If you’re unsure, run a Super Search through the ATO or MyGov website or get in touch with us to assist you in finding lost Super
3. If you have more than one super fund, consider combining them.
By combing your super fund, you’ll end up paying less in fees…
We have seen recent reports where clients have multiple Personal Insurance arrangements across accounts. The costs of Personal Insurance arrangements can be high and will take funds from your account to cover those costs. This will affect your eventual retirement position.
4. Check that your employer is paying you super guarantee contributions
Unfortunately, this happens way too often where employers either underpay or don’t pay their employees their Superannuation entitlement.Check with your super fund to ensure the correct amounts are being funded and if something doesn’t seem right, approach your employer in the first instance.If that doesn’t work contact the ATO to voice your concerns. They will launch an investigation. Remember, your Superannuation Guarantee Contributions is a right you are entitled to so don’t be shy about checking this and asking the right questions.
5. Review your insurance
Have a look at the insurance cover you have through your super.See if the level of cover is suitable for you and if it’s actually the right amount.Your insurance premiums are funded from your super balance which means that it will deplete your balance especially if it’s not being offset by contributions.
6. Monitor your investments returns
Follow the progress of your investments and monitor the investments returns.If you find that an investment has been delivering poor results for you, you may need to seek an alternative investment option that better suits your risk profile.
7. Consider a full super review from a certified financial planner
Super can be tricky and if you’re not financially savvy you could end up investing your funds in the wrong place.Meeting with a professional certified financial planner is one of the best things you can do to ensure you are maximising your super for your retirement.A financial planner will conduct a full review of all your finances and will be able to provide you with personal advice that is tailored to your needs to help you meet your retirement goals.
LifeTime Financial Group are specialist (holding appropriate accreditations) advisors who are ideally positioned to assist you.
Would you like to discuss your personal position further with one of our highly qualified financial planners? Why not call us today on 03 9596-7733? There is no cost or obligation for our initial conversation/meeting.
Written by Anthony Stedman of LifeTime Financial Group. A leading privately-owned Melbourne based Financial Planning practice.