You deserve to retire comfortably after a lifetime of improving Australia for the better. There’s nothing worse than not being able to live a comfortable life after your working days are done.
No matter how little or much you make you can definitely create a retirement plan that’ll ensure that all your bills are covered when you retire.
Today, we plan on looking into a few ways you can improve your superannuation contribution without changing too much of what you’re currently doing.
Saving for the future is one thing, making the most of how you save is another.
Table of Contents
1. Add TFN to Super
Failure to supply your super account with your Tax File Number will cost you quite a bit of money.
A simple way to avoid this loss is to ensure that your super fund has your TFN. Failure to do so will likely cost you money in the form of penalty taxes and exclusion from co-contribution schemes.
2. Create a Retirement Plan
A great way to improve your super is to carry out what is known as a “financial stocktake.” This should include things like when you would like to retire and the minimum income you would be comfortable with during your retirement.
3. Ensure You’re Paid What You Deserve
Employers have three months to pay into their employee’s super account. A good way to improve your super account savings is to keep close tabs on what your employer pays into it and keep a close eye out for numbers that don’t add up.
4. Salary Sacrifice
Look into adjusting your salary sacrifice arrangements. If you’re yet to make adjustments to the reduction in your Concessional Contribution limits, the time is now.
For those of us younger than 50, the limit is now $25,000, and $35,000 for those of us older than 50.
5. Protect Capital Gains
Reducing capital gains tax by making concessions is nothing new. Simply put, you can reduce your capital gains tax by making concessional contributions.
Controlling how much you pay in taxes yearly is a very effective way to ensure that you keep your super account healthy.
6. Operate One Account
It’s not hard for those of us who haven’t paid enough attention to our super or who switch jobs regularly to end up with multiple super accounts.
Multiple accounts mean multiple fees that reduce the amount of money you have left at the end of the day.
7. Choose the Best Fund
Knowing where and how your money is invested is very important. A large sum of your super could be invested in a fund that’s just not right for your current situation.
Invest time into comparing the market to your fund, focus on fees and long-term investment options available to you.
8. Involve a Professional
Superannuation is a lot of things, but one thing that it isn’t is simple. It can be challenging and complex to everyday individuals.
A lot goes into successfully investing in super, and a lot of people successfully invest in super on their own. Still, it’s always better and safer to involve those who specialise in superannuation.