Ten top tips to boost your super
For most of us, superannuation will be a significant part of our retirement. We'll rely on it as an important source of income after we stop working. But, when you think you may not have enough super to maintain your lifestyle, it's easy to give up and do nothing.
However, a little thought and planning in the early stages of building your super can go a long way towards maximising the benefits later in life, when you need it most. There are lots of clever ways to spice up your super. Here are ten suggestions to get you started.
1. Find out how it works
Is there anything you would spend thousands of dollars on but not bother to find out how it works? You have an investment in super, so find out how it works. Aside from reading the information on this website, you could also sit in on one of our member info seminars. You can even ask us a question, or two - we won't mind! Your employer might also be able to arrange for us to come to your workplace. Find out when our next seminar is on.
2. Combine your super into one fund
People usually change jobs a number of times during their lifetime. This can mean different super accounts in a range of different funds, each one charging you a fee. If you've got money in more than one super fund, think about combining these accounts to give you more control over your money, less paperwork and just one set of fees to pay. Firstly, Download and complete a Super transfer form and we'll do the legwork for you. What could be easier than that?
3. Find your lost super
It's estimated there is more than $8 billion of lost super out there. That's a lot of money and there's a chance some of it is yours. The Australian Taxation Office (ATO) and the superannuation industry have set up a system, called the Lost Members Register, to help people find their lost money.
You can use this to see if you have some super that you didn't know you had, maybe from a part-time or casual job you once had. It's easy to search for your money via SuperSeeker, the ATO's online search tool. After all, if you lost a $100 note, you'd spend at least a few minutes looking for it, so why not spend time finding all of your super?
4. Get up to $1,500 a year from the Government
To help boost super savings, the Government will pay up to $1,500 a year for people who pay their own after-tax money into super. If you have an assessable income (and reportable fringe benefits) of less than $58,980 p.a. and pay your own after-tax money into super, you could be eligible for this tax-free payment each year.
It's not often the Government will give you money, so don't miss out. Download the Government co-contribution factsheet for more information.
You could also visit the Australian Taxation Office website www.ato.gov.au and use the co-contribution calculator to find out out how much co-contribution you may be entitled to.
5. Open an account for your spouse
You could also pay money into your spouse's super account. And, if they earn less than $13,800 per year (assessable income and reportable fringe benefits), you might even be eligible for a tax offset of up to $540 on your payment, another generous payment from the Government just for saving some money! Ask us about making a spouse contribution and see if you can do your partner a favour and get something for yourself at the same time.
6. Know what you can get from Sunsuper now
Who says you have to wait till you're 60 to get anything from your super fund? With Sunsuper there are heaps of things you get straight away.
Did you know that as a member of Sunsuper you can receive insurance premiums that are generally lower than rates that you can get privately? Find out how much cover you already have. You might also have disability cover, or even income protection cover. If you're already paying for insurance with a private insurance company, you might be over insured, so look into it. Plus, as a Sunsuper member, you can get great deals through Members Equity Bank that could save you thousands of dollars a year through your mortgage or credit cards. Then there's education material, free online access to your account and financial planning, contact our Member advice centre on 13 11 84 for more information.
7. Invest for growth
With Sunsuper you can choose how to invest your money. Choose from 29 different investment options to suit your particular needs and interests. You can combine a number of different options and you can even switch between options for free if you feel your needs change.
8. Pay in your own money
Besides getting a free boost from the Government if you are eligible, paying just a small amount of your own money into your super account could make a big difference to the way your investment will grow. Many Australians rely on the minimum 9% super payment from their employer, but it's widely accepted this won't be enough to live on. If you can't afford extra now, maybe next time you get a pay rise think about putting half of it into your super. That way you probably won't miss it, but your super will grow faster. Talk to your employer to set this up if you're interested. For more information, download the Want a bigger retirement nest egg factsheet? Put more money into super.
9. Look into salary sacrifice
Salary sacrificing is an arrangement between you and your employer where you allocate part of your before-tax (gross salary) which would otherwise be included as taxable income, to your super. By salary sacrificing super contributions, you can boost your super and potentially reduce the income tax you need to pay. Check with your employer to see if you can salary sacrifice. To find out more, download the Salary sacrifice factsheet.
10. Get a financial plan
If you really want to know where you are going and how to get there, speak to a Sunsuper Financial Planner. They can help you with all aspects of your finances - not just your super - to ensure you're making the most of your money.
