Are you managing your super?
Are you actively managing one of your largest assets, your superannuation, or is it just chugging along?
For most of us, our family home is our largest asset, followed by our superannuation.
We spend a lot of time on the upkeep of our home but what are we doing about our super? Too often people glance at their annual statement and then it’s filed away and forgotten about until the next statement arrives.
Sure, you can’t touch your super until you met a condition of release, most commonly retirement but, the work to ensure a healthy balance in retirement needs to be a priority throughout your working life.
Tax on your Super Contributions
Contributions your employer pays to super is great but will it be enough in retirement? You may wish to review the amounts you contribute and get some potential tax benefits along the way.
The tax you pay on your super contribution depends on the type of contribution and how much you contribute each year. Tax paid on contributions generally depends on whether the contributions were made before or after you paid income tax.
Super in your 40’s
In your 40’s, you may still have school fees and other commitments, however, don’t dismiss super altogether.
Do your research and make sure you don’t have any unclaimed super that you are entitled to.
Can you make any before-tax contributions?
If you are self-employed, you will be able to make before-tax contributions up to a certain threshold.
Can you make contributions on behalf of your spouse? Your spouse may work part time or not be undertaking paid employment; the spouse income test has increased from $13,800 to $40,000.
Super in your 50’s
Now’s the time you need to focus more on your super and review how much you are contributing. However, you need to make sure your contributions are within the allowed super caps otherwise you may find you will have to pay extra tax.
Super in your 60’s
From age 65, most people have unrestricted access to their super.
Super benefits (both lump sums and income streams) paid from a taxed super fund to people 60 years or more are tax-free and not included as assessable income.
Ensure you have enough money to last your retirement years.
Super in your 70’s
You can make contributions to your super until you turn 75 as long as you work at least 40 hours in 30 consecutive days in the financial year.
What to do?
Contact Patrick Rowan & Associates to discuss your individual circumstances.
The information contained in this article not necessarily reflect the opinions, beliefs, position or advice of Patrick Rowan & Associates. The information is purely factual in nature and does not constitute financial product advice and should not be relied upon as such. The information in this article has been prepared by Patrick Rowan & Associates without taking your personal circumstances into account, it is general advice only. Information is current as at the time the article was produced. Before acting on any information provided, take into account your objectives, financial situation or needs AND seek professional advice. Liability limited by a scheme approved under professional standards Legislation.