Superannuation

For the vast majority of people, Superannuation is, quite simply, the most effective vehicle in which to accumulate funds for retirement. Sure, it’s complicated, is subject to a seemingly never ending array of changes and your money is generally not accessible until you are retired but, the long term nature of the investment coupled with the generous tax concessions that go with it as well as the ability to fund some of your insurance requirements through it, make it the preferred ‘retirement funding’ vehicle.

Regardless of your current stage in life, a well thought-out superannuation strategy will, at some point, be pivotal in helping you to achieve your retirement goals, while at the same time ensuring your family’s financial future is protected.  We can help you build a financial structure that is in line with your dreams, goals and financial requirements. A concise superannuation strategy is an important part of this process.  Our strategic superannuation planning explores each of the critical components of your financial situation. Perhaps more importantly, we gain a thorough understanding of your desired lifestyle in retirement.  As stated above, changes to superannuation rules occur on an ongoing basis, it is more important than ever to consider superannuation as an investment at an earlier stage in your life.

Superannuation is one of the most misunderstood investment vehicles on offer. It does not help that the government constantly changes the goal posts however it is still one of the most tax effective vehicles for clients to utilise with 15% tax on earnings and 10% tax on capital gains compared to individuals paying up to 45% and 22.5% on earnings and capital gains respectively.

There has been a lot of scrutiny within our industry on fees but like anything in life you get what you pay for (would you go to a particular surgeon purely because he is the cheapest?) and while we agree that you should not pay any more than you have to, the number one goal is to help you reach your retirement goal, not pay low fees.

Common questions asked by our clients include, ‘How much should I contribute?’, ‘Should we hold our insurance through super?’, ‘Should we consider a self-managed superannuation fund?', ‘What should my super be invested in?’

Some ways of getting the most out of your superannuation include:

Work out how much you might need to live on in retirement. Then determine a long term savings target.
Work out how much you need to add to your super to achieve your target.
Start early to get maximum benefits from the effects of compound interest.
Make tax-deductible contributions to super if you are self-employed.
If you are an employee, approach your employer about organising salary sacrifice.
Take advantage of the co-contribution benefits, if eligible.
Review on a regular basis and make changes as you go along, if necessary.