Superannuation is an investment that builds up over your lifetime to provide money for your retirement. It’s a way of saving for retirement which is, in part, compulsory, and the great news is that it’s a very tax-effective investment.
Most Australian employers are required by Government legislation to contribute 9% of the ordinary time earnings of their employees into the employee’s nominated super fund. These compulsory contributions are called Superannuation Guarantee (SG) contributions.
Growing your super
Your SG contributions, plus any extra contributions you’ve made, are invested for you into your super account. Over the course of your working life, these contributions ‘accumulate’, together with any investment earnings, so that when you leave the workforce, you’ll have money to fund your retirement.
All the earnings are tax-free and, provided you are 60 years of age or over, all of the income you receive, either as a lump sum or regular payment is also tax-free.
There are a number of ways you may be able to contribute to your super to increase your savings in retirement – even if you’re not working. The types of extra contributions you can make include additional employer contributions (salary sacrifice contributions), voluntary member contributions and government co-contributions.
No matter when you plan to retire, it pays to start thinking about how much super you’re likely to need.
At Divorce Financial Planner, we take the hard work out of retirement savings, including self-managed super funds. We can help you locate and consolidate lost super and we provide the knowledge, support, tools and resources necessary to you make informed decisions about your money.
Centrelink payments can add to your income in retirement, Divorce Financial Planner can assess your Age Pension entitlement and ensure you receive the maximum benefits you are entitled to. We even assist you with the application process.
Investment planning
The most significant impact on your long-term financial position is the strategic financial planning advice you receive, including asset allocation and the selection of investments that are appropriate for you. These are just two important areas where the highly skilled financial planners at Divorce Financial Planner add real value to the long-term financial wellbeing of our clients.
Holding investments that are appropriate to your personal circumstances, goals and objectives and that are in line with your risk profile is central to long-term wealth creation. At Divorce Financial Planner we listen to what you want to achieve and partner you on your wealth creation journey, providing the guidance you need to find your financial way.
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