Whether you are looking to retire or have just started your first full time job, managing your superannuation account is an important component to consider. A review of your superannuation fund can take form in a number of ways, detailed below:
Review Your Current Fund
Ensure your retirement funds are invested in line with your investor risk profile and your superannuation fund is appropriate for your needs.
Identify Tax-Effective Superannuation Strategies
Personal concessional (before tax) contributions can be used to reduce your overall tax position through claiming a tax deduction for any additional contributions into super.
The maximum amount of concessional contributions you can make into super each year is $30,000.
This will take the form of super guarantee paid by your employer, salary sacrifice and personal deductible contributions.
An additional option for individuals who qualify is to utilise the previous five (5) financial years of any unused concessional contribution cap, this is referred to as “catch-up” concessional contributions.
Additional Contributions Into Super
Non-concessional (after tax) contributions are a perfect way to provide a material boost to your superannuation balance.
The maximum amount of non-concessional contributions you can make into super each year is $120,000.
You also have the ability to “bring forward” the next two (2) financial years of contributions to make a total one off contribution of $360,000.
If you are selling a main residence which has been owned over 10 years and you are over 55 you and your partner can put up to $300,00 each into your superannuation fund.
Review Your Superannuation Regularly
It is important to continually review your overall financial situation to ensure you are staying on track to meet your retirement goals.
The sum of these four steps will enable you to totally transform the framework of your finances and provide for a financially independent retirement.
Utilising catchup and bring-forward contributions can dramatically boost your superannuation fund balance, as long as cash flow permits.
In a time where real property assets (i.e. your home) have increased at a thunderous pace the last decade, it might be a good time for you to investigate mobilising equity in a property asset to reinforce your superannuation fund.
If you would like to learn more about our superannuation services, contact our team today.
