Super and how you can increase it

Retirement might seem like it’s a long way off in the distant future, and that can make it difficult to actively consider and review your super. The problem with this thinking, is that if you haven’t set your super up with careful consideration, you are most likely not getting the best possible return. If you want to have enough money to live comfortably in retirement – now is the time to grow your nest egg. The earlier you set your super up the better – however it’s never too late to rethink your super. Once set, we tend to leave our super to its own devices. Make sure to review your super, to ensure you’re getting the best return.  Start with these tips to make sure you’re making the most out of your super. How much super will you need to retire? The best way to find out how much super you will need to retire is to work out what kind of lifestyle you want to live in retirement. Next you’ll need to work out how much money you will need to fund this lifestyle.   For a general idea, according to the Association of Superannuation Funds of Australia (ASFA) the retirement standard for those aged around 65 is (as of June quarter 2017): Modest Lifestyle Comfortable Lifestyle Single Couple Single Couple Total per week $467 $671 $840 $1,155 Total per year $24,270 $34,911 $43,695 $60,063 To check how you are tracking, use ASIC’s retirement planner. Tips to increase your super   Could you have lost super? Combine your super into one fund. According to the Australian Taxation Office...

How will the new changes to superannuation affect you?

            Superannuation is your means to live comfortably when you choose to stop working. Many changes will soon be made to superannuation in Australia, having a significant impact on all super holders, both young and old. It’s important to consider how these changes will impact upon your super, and if you need to change your current super arrangements. Below are some of the changes, and the opportunities they can provide for you. Introduction of a transfer balance cap A $1.6 million cap has been introduced on the amount that can be transferred to super in retirement phase when earnings are tax-free. Additional savings can remain in an accumulation account (where earnings are taxed at 15 per cent) or remain outside super, coming into effect from 1 July 2017 and indexed in following years. Retired people with retirement phase balances below $1.7 million on 30 June 2017 will have 6 months from 1 July 2017 to bring their balances under $1.6 million. Concessional superannuation contributions cap reduced The annual concessional contributions cap has been reduced to $25,000 (from $30,000 for those aged under 49 at the end of the previous financial year and $35,000 otherwise). Comes into effect from 1 July 2017. Concessional superannuation contributions tax threshold reduced The threshold at which high-income earners pay Division 293 tax on their concessionally taxed contributions to superannuation has been reduced from $300,000 to $250,000. Comes into effect from 1 July 2017. Non-concessional contributions cap reduced and criteria introduced Non-concessional contributions rules have been made, and come into effect from 1 July. The annual non-concessional contributions cap has...