XDC2RPZW

Brought to you by Zurich Finance

Superannuation checklist

Australians might be good sports, but we’re historically bad savers. And such a poor voluntary saving record has huge ramifications for our retirement, especially when retirement can last 20 years or more. That’s why superannuation is so important. And as the onus of financing that retirement is increasingly shifting to the individual, taking an active role in managing one’s super should start sooner rather than later. Accordingly, there are various options and strategies we should regularly review throughout our working life to maximise those superannuation earnings.

Starting out – the roaring 20s

  • What’s super? Find out. Your lifestyle in retirement will depend on it
  • Is your employer’s compulsory contribution enough?
  • Identify your risk profile
  • Consolidate funds if you change employer

Accumulation phase – up to 35 years old

  • Contribute more – is salary sacrifice an option?
  • Consolidate funds if you change employer.
  • You may qualify for a tax deduction on contributions up to $11,388.
  • Review annual statements – consider growth assets in your fund mix.
  • Non-working or low-income earning partner? Spousal rebate might apply.

Growth phase – 35-49 years

  • Forecast a retirement income and assess whether you’re on track.
  • Maximise returns – investing in growth assets might be the key (depending on your risk profile).
  • You may qualify for a tax deduction on contributions up to $31,631.
  • Consolidate funds if you change employer.
  • Super top up – is salary sacrifice an option?

Pre retirement – 50-60/65 years

  • Crunch time – are you on target to meet that retirement nest egg?
  • You may qualify for a tax deduction on contributions up to $78,445.
  • Maybe not the time to be investing in high growth/high risk assets.
  • Review annual statements carefully.

    Getting close to your RBL?*. Making contributions on behalf of your spouse may be an option.

* Reasonable benefit limit – maximum super and retirement benefits a person can get over their lifetime taxed at concessional rates.