While the current super guarantee of 9.25% and its eventual 12% sound like a lot of money, most people who want a better retirement lifestyle will want to make extra contributions and use other techniques to ensure that they live the lives they want after they retire. Here are some tips for maximising your super.
Consolidate to One Account
If you have more than one super account, you may be paying unnecessary fees. Each fund charges fees and these fees can turn into a lot of money over a period of 30 years. When you pay extra fees, you are losing money twice: the fee itself and the money it could have made for you as an investment.
It is a good idea to move it all into one account. This means less paperwork, less fees and more money for your super. In addition, it is much easier to monitor the performance of one fund than multiple funds.
Salary Sacrifice
This is where your employer deposits a portion of your salary into your super account. It’s a very effective way to grow your super because you don’t have to actually take the money out of your pocket or write the cheque yourself. Not only is the money guaranteed to go into your super, you won’t really notice that it is gone after a few months to adjust.
Co-Contribution from the Government
If you qualify as a low income earner, the government may match your contributions up to $500.
Spouse Rebate
If your spouse makes less than $13,800 per annum and contributes to your super, they can receive a tax rebate for up to $3,000 of contributions. In other words, you both win.
Get Professional Advice
There are many ways to grow your super. Get professional advice from financial planners who know how to make your money work for you. Call Approved Financial Planners today: (08) 6462 0888.
