CALL US: (07) 3367 0999 | EMAIL US:

Superannuation tips for each stage of your working life

A 2018 study revealed that almost 40% of Australians think they won’t have enough money to retire on – and that number is on the rise. Managing your superannuation fund can be confusing but it was found that 50% of us do not consult a financial planner. As we face different financial challenges at different points in our lives, how do you ensure you have enough to retire on?

20s to 30s:
It is not uncommon for many people in their 20s and 30s to have multiple superannuation fund accounts accumulated through years of youth part-time work or otherwise. Now is the time to chase up on lost super. With one superannuation account, you not only can save on fees but it may also give you better investment returns. When combining and comparing your active accounts, be mindful of any termination fees, insurance policies, investment options, and ongoing service fees.

40s to 50s:
You may find yourself earning more than you’ve ever earned before, but it is also a time where you may be juggling more living costs – from your mortgage to your growing family’s fees. Experts advise against decreasing your mortgage payments and encourage voluntary payments to your superannuation fund. If you have a partner, he or she may be able to help grow your super by making a ‘Spouse Contribution’ to your super account or consider if contribution splitting is viable for you. You may also be thinking about your retirement plan at this stage, and now is a good time to review your superannuation’s insurance and beneficiary policies.

60+:
This is the time many consider leaving the workforce but this decision doesn’t have to be as daunting or finite as it may seem. An alternative to this is the Transition to Retirement (TTR) income stream, where you can concurrently decrease your working hours while withdrawing money from your super once you reach your preservation age. There are a few regulations on how you can access your super and how you will be taxed so it is best to seek financial advice for your situation. In your 60s, you may be eligible to apply for a government age pension or withdraw a tax-free lump sum from your super fund. Your 60s might also be a period where you can consider your estate planning strategies.

Business
advice

taxation
planning

compliance
services

News

Amnesty means that 24,000 businesses own up to underpaying Aussies superannuation

September 24, 2020

An amnesty scheme which ended earlier this month has caused around 24,000 businesses to admit to underpayment of their worker’s super. A total of 588 million dollars will be distributed to almost 400,00 individuals.

The scheme, which covered payments from the introduction of super in 1992, gave employers the opportunity to come clean without any consequences as long as they paid the unpaid super as well as 10% interest for every year the money was overdue.

The ATO will be directing its attention at any businesses that did not admit fault and these businesses will face severe penalties.

Many individuals are looking to access their superannuation early in order to have support during these times. Although there is criticism of early access to super, this facility has been helpful to many families to keep afloat.