Everyone wants a secure and happy retirement, free from financial worries.
Constant changes to superannuation law and the investment environment mean that setting in place a strategy to achieve financial independence during retirement can be difficult.
Superannuation can be an effective way to secure their financial future in retirement for many working Australians. To ensure your fund is on track to help you reach your retirement goals, it’s important to regularly review your superannuation fund and level of contributions. The more extensive your goals, the more super you’re likely to need to provide sufficient retirement income, so it’s important to know what opportunities you should be taking advantage of.
MAXIMISING YOUR SUPER
The government provides generous tax incentives to encourage Australians to invest in super with contributions being taxed at 15% rather than the personal income tax rate of up to 46.5%, including the Medicare levy. You might consider setting up a salary sacrifice arrangement with your employer, allowing you not only to make super contributions from your pre-tax salary but also potentially reducing your income tax bill.
You may be eligible for other benefits, such as the government co-contribution or a tax rebate when making contributions to your spouse’s super. You may even be able to save tax by paying for your life insurance through your super.
Some people find it difficult to know how much to contribute to super apart from the current employer sponsored superannuation level of 9.5% (now legislated to gradually increase to 12%). There is no right or wrong amount but there are contribution caps (as required by legislation) which limit how much you can contribute each year.
If you own a small or medium-sized business, we can advise you on how to structure a corporate super plan that takes into account any salary packaging requirements and remuneration programs.
It is never too late to take control of your super. With the complexity of Superannuation Rules, it’s important to get professional financial advice to ensure you make the most of your superannuation savings.
Our expert adviser, backed by Centrepoint Alliance’s research and technical expertise, can guide you through this maze and set in place a strategy to provide a financially comfortable and stress-free retirement.
To find out how to maximise your Superannuation, contact Investment Options (Aust) Ph. 4775 5199.
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