Have you ever thought about your dream retirement? Of course, you have! What about the role superannuation plays in laying the groundwork for this dream? Perhaps not.
Superannuation isn’t just about money; it’s about insuring you get to live your best life after you stop working. It’s about having the freedom to do what you love and peace of mind knowing you’re financially ready.
But, how much do you really know about superannuation?
Take our quiz and find out!
So, how did you go?
Superannuation is a fundamental part of the financial journey for most Australians. While it may seem straightforward — saving for retirement — the intricacies and options within the superannuation industry can be quite extensive.
Simple steps like making regular contributions, understanding your chosen investment option, and taking advantage of tax benefits can have a substantial impact on your retirement savings.
It’s essential that you explore your options and select the right super fund for your needs. For those who plan strategically and engage with their superannuation, it’s entirely possible to maximise your savings and live your dream retirement.
For personalised advice tailored to your superannuation planning, retirement goals, and investment strategies, consult your financial adviser. They can provide guidance to help you navigate this critical aspect of your financial future.
So, how did you go?
Superannuation is a fundamental part of the financial journey for most Australians. While it may seem straightforward — saving for retirement — the intricacies and options within the superannuation industry can be quite extensive.
Simple steps like making regular contributions, understanding your chosen investment option, and taking advantage of tax benefits can have a substantial impact on your retirement savings.
It’s essential that you explore your options and select the right super fund for your needs. For those who plan strategically and engage with their superannuation, it’s entirely possible to maximise your savings and live your dream retirement.
For personalised advice tailored to your superannuation planning, retirement goals, and investment strategies, consult your financial adviser. They can provide guidance to help you navigate this critical aspect of your financial future.
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The compulsory minimum superannuation contribution, often referred to as your SG contribution, is currently set at 11% of your pre-tax wages.
The First Home Super Saver Scheme (FHSS) is a government initiative that enables eligible Australians to access a lump sum from their superannuation fund to put towards a first home.
Conditions apply so make sure you get the details before signing up.
Conditions apply around the amount of personal contribution you can make to your superannuation, and whether you can claim the contributions as a tax deduction. It’s recommended that you speak with your financial adviser or tax accountant before making any decisions.
Select all that apply:
If you’re over 55, have owned your home for 10 years and you’re thinking about downsizing to access cash for retirement, the government will allow you to contribute some of the sale proceeds to your super fund.
Downsizer contributions are up to $300,000 (singles) or $600,000 (couples), and must be made within 90 days of receiving the proceeds of the sale of your home.
Contributions can only be from the sale of one home.
Under normal circumstances your super is not included in your estate because it is governed by tax law. You need to complete a Nomination of Beneficiary form to advise your super fund which of your dependants you wish to receive the benefits.
If you die without completing a Nomination of Beneficiary form, your fund trustee will determine how the benefits will be distributed. As this may not be your choice, it’s advisable to complete a Nomination of Beneficiary form.
People on higher incomes tend to benefit from salary sacrifice more than people on lower incomes.
This is because all contributions to super attract a 15% contributions tax. If your marginal tax rate is higher than 15%, you are effectively paying less tax on the amount you contributed to super, than if you were to pay your full marginal rate on it.
Salary sacrifice super contributions come off your pre-tax salary which means you are paying tax on a lower amount of income – in some cases you may drop into a lower tax bracket.
If you’re earning less than $18,200 per year, you pay 0%. If you’re earning $18,200 – $45,000 your marginal tax rate is 19%, so there is little to no benefit to you to salary sacrifice.
Select all that apply:
As superannuation is governed by tax law, it does not form part of your estate. This means that it’s not treated the same as your house, car, personal belongings, etc.
To determine what happens to your super after you die, you need to nominate a beneficiary via your super fund.
There are three kinds of nomination, depending on your circumstances. They are:
Select all that apply:
A Transition to Retirement (TTR) strategy is a way of accessing part of your super while you’re still working.
Provided you’ve reached your preservation age, (between 55 and 60) a TTR may be a good strategy for you because:
Select all that apply:
In certain circumstances, you may be granted early access to your super funds. Those conditions include:
