Superannuation is a fantastic way to save money for retirement. Why? The simple answer is tax. With the maximum tax rate of 15%, your money can grow faster inside super than it would outside super where earnings are generally taxed at a much higher rate. 

It’s not all about retirement

You don’t necessarily have to wait until retirement to benefit from your super. There are a number of effective strategies that can be used to optimise your finances long-before retirement. For example:

• Deducting insurance premiums from your super
• Salary sacrificing into super to reduce tax.

You have more control over your super than you might think

Super has come a long way since the superannuation guarantee was introduced in 1992. Nowadays, you have the ability to choose your own super fund. And it will become even easier to compare super funds once the Government’s Stronger Super reforms are in place. This means you can have more say in where and how your super savings are invested.

Taking charge of your super is easy

The first step in taking control of your super is choosing the right super fund. Here are some things to consider:

• Investment options: Make sure that the fund offers a wide selection of investment options that suit your investment strategy and risk profile
• Fees and costs: Look at the fund’s product disclosure statement to get details of all significant fees. When comparing fees, remember to factor in any extras that may differ from fund to fund
• Insurance cover: Make sure that the fund offers the types of insurance and level of cover you want at an acceptable cost

Keep up to date with super

Once you’ve got yourself in the right fund and have your super strategies under control, don’t fall into the trap of thinking that your super will take care of itself. Superannuation rules are constantly changing and without keeping up-to-date with the latest goings-on, you could find yourself paying more tax than you need to.

 If you would like to know more information please contact Emma Brooke 07 49725177 or emma.brooke@gtcfin.com.au

This information is of a general nature only and neither represents nor is intended to be specific advice on any particular matter. Infocus Securities Australia Pty Ltd strongly suggests that no person should act specifically on the basis of the information contained herein but should seek appropriate professional advice based upon their own personal circumstances.