WHAT IS SUPERANNUATION?
Superannuation often called super, is a way to save for your retirement. You build up super while you are working to make sure you can have a comfortable retirement.
Super is a tax-effective environment for your money; the account is held in your name, and both you and your employer can deposit money into your account. Your money will attract investment earnings, and when you reach your ‘preservation age’, you are able to start drawing on these funds.
Your employer must pay 10.5% of your salary into a super fund. This is called the Super Guarantee and it’s the law. The Super Guarantee will gradually increase to 12% in the coming years.
WHY IS SUPERANNUATION IMPORTANT?
“Many of us will spend more than a quarter of our life retired, as people are now living until an average age of 86 years (if you’re male) and 89 years (if you’re female). Life expectancy is expected to rise to 91 for males and 93 for females by 2050.
So, you might need a lot more money for your retirement than you think. Unless you’re counting on a lotto win or growing your own personal money tree, super can help you enjoy your retired days by allowing you to maintain a good standard of living, which isn’t achievable by receiving just the Age Pension.”
Association of Superannuation Funds Australia (ASFA) [1]
HOW DOES SUPERANNUATION WORK?
Superannuation is treated differently to most other savings. For most people, super will be taxed at a lower rate than a similar investment outside super. If you’re self-employed, you may be able to claim a tax deduction for personal contributions you make to super.
WHAT YOUR EMPLOYER DOES
If you’re entitled to receive super, your employer must pay 10.5% of your salary into a super fund at least every 3 months. This is called the Super Guarantee and it’s the law. The Super Guarantee will gradually increase to 12% in the coming years.
WHAT YOUR SUPER FUND DOES
Once your superannuation fund receives your contributions it invests this money either in a default strategy or one you have chosen yourself. Fees charged by the super funds may include general fees such as administration, member and investment, as well as optional extras including adviser fees and insurance premiums.
YOUR ROLE
It is important you keep an eye on your superannuation payments and balance to ensure your money is working as hard as it can for your retirement.
If you are self-employed, you are responsible for making your own superannuation contributions.
HOW WE CAN HELP?
The team at Zebra Tailored Wealth can help you understand, grow and manage your superannuation.
We can help you:
- Consolidate your super funds and help you save on fees
- Identify investment options tailored to your goals and risk profile
- Review your concessional and non-concessional contributions to super
- Identify strategies to help boost your superannuation
- Enjoy the benefits of salary sacrifice
- Understand your insurance options within superannuation
- Determine if you have the correct beneficiary nominations in place
- Determine whether a self-managed super fund (SMSF) is right for you.
HOW TO FIND YOUR LOST SUPER?
If you think you may have lost track of your super then you have access to services to help you find your lost accounts.
This service searches the Lost Members Register and other ATO records, such as ATO-held super accounts and unclaimed super money, for your lost super accounts. You can also use the phone service (13 28 65).
You can use the ATO’s myGov service to see details of all your super accounts, including any you have lost track of or forgotten about. You will need to create a myGov account and then link your account to the ATO service.
Ask your previous employers for the names of the super funds that received contributions on your behalf.
Contact us for more information about how we can help you make the most of your superannuation.
[1] http://www.superguru.com.au/retiring/how-much-super-will-I-need/
