What is Superannuation?

Superannuation is a retirement program which allows Australians to set aside funds during their working lives for use in retirement.

Most of us would like more than the age pension to live on in retirement. By making regular contributions to, or topping up your superannuation, you can have a more financially secure retirement. Standard employer contributions (the Super Guarantee) are at 9% in Australia. Many experts say that because of broken work patterns, and for some, shorter working lives, this is too low for most people to be able to accumulate enough superannuation for their retirement. If you agree with this, you should think about making regular contributions to, or topping up your superannuation.

How much super is enough?

Superannuation can provide you with more financial security in your retirement. Superannuation on top of the Age Pension can make all the difference to your retirement lifestyle. You can have an improved standard of living and finally some time to yourself to enjoy those things you've been putting off all those years.

If you need your superannuation at retirement to pay off debt or buy a new car, as well as give you an added income to supplement the Age Pension, you had better start saving now. You might also prefer to be self sufficient in retirement and not rely on the Age Pension. It's never too late, and it's never been easier. You can make regular contributions or top-up payments before or after tax, via cheque or via automatic bank transfers. You can also boost your superannuation if you come into extra money such as a small inheritance, tax refund or from extra savings.

If you really want to build up your Superannuation?

If you are worried about not having enough superannuation, then it is time to analyse your income and expenses and look for ways to improve your savings.

Most of us would like more than the age pension to live on. By making regular contributions to, or topping up our superannuation, we can have a more financially secure retirement and have more time to do the things we enjoy the most.

Tax rules can favour superannuation so don't wait too long to give your superannuation a boost. You can increase your savings in superannuation by making pre-tax contributions or through salary sacrificing.

Are you paying multiple Superannuation fees?

The average Australian has multiple superannuation funds, and is therefore paying multiple sets of fees. One way to quickly increase your balance is to 'rollover' your superannuation funds and combine them into one fund. This lets you get ahead on three fronts:

• The low fees in many superannuation funds mean that you keep more investment funds in your account working to provide potential returns for you
• It is much better to have all your superannuation in one fund, with a range of fund managers and investment options for you to choose from
• Having all your superannuation in one fund cuts down on the hassle of dealing with paperwork for multiple funds and multiple fund managers

Do you need to consolidate your Superannuation?

If the answer is 'Yes', contact our office to discuss your superannuation in detail.

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