Have you seen a superannuation specialist?
Do you want to increase your super but are not sure how? Super is the major part of your savings for retirement, so you want to make sure you’re making the most of it.
With better nutrition and medical advances, people are living longer and the average life expectancy is increasing – men’s life expectancy was 79 in 2007 and is estimated to increase to 86 by 2047, while women’s 2007 life expectancy of 83 is forecast to increase to 90 by 2047. In living longer, people will need more in retirement savings.
The nine per cent Superannuation Guarantee (SG) contribution made by your employer on your behalf may not be enough for your retirement needs. But how much is enough? Some say an extra three to five percent is required on top of your SG.
Ways to boost your super
There are a number of ways you could increase your super savings:
If you have more than one super account, consolidating them into a single account could save on fees and paperwork.
If you earn less than $61,920 (2011/12 financial year) a year and make an after-tax contribution to your super, you could be eligible for the Government’s Super Co-contribution which can give you up to $1,000 a year extra to your super.
Depending on how you and your spouse’s salary compare, you could also consider making spouse contributions.
A salary sacrifice strategy allows you to ‘sacrifice’ some of your pre-tax salary to super. Not only does this allow you to maximise your concessional contribution limit, but could reduce the amount you pay in tax as well.
Speak with John Tsolakis, who is our superannuation specialist. He will consider your situation and help you decide the most appropriate way to build your super savings for the retirement you’re looking forward to.