Super. It’s something we all should know more about, but often end up putting to the back of our minds to worry about later. In fact the sooner you find a few minutes to think about it, the sooner you can start making your super work for you, instead of the other way around.
Choose the best super for you
The YourSuper tool is a great place to start as it helps you to compare Super products (including the one you’re currently using) and choose a super fund to meet your needs. The tool ranks MySuper products in order of fees and net returns, and can directly link you to the super funds’ websites.
When assessing how the different super products stack up, make sure to consider insurance costs, the different types of fees, as well as the average returns. If you’d like some guidance, you can reach out to one of our financial advisers for more information.
Salary sacrifice
If you feel like boosting your super account even more, then you may consider setting up a salary sacrificing agreement with your employer. This will mean your employer pays some of your salary or wages directly into your super fund instead of to you. These contributions are only taxed at a maximum of 15%, which for most people is generally lower than your marginal tax rate.
Downsizer contributions
Another great initiative for those who aren’t too far off retirement is the ability to make a downsizer contribution into your super fund. As long as you are aged 55 (from 1 Jan 2023) or over, and haven’t previously made a downsizer contribution, then you are able to put up to $300,000 from the sale of your home into your super providing you meet the full eligibility requirements.
Making the right decision
For many Australians, an important consideration when choosing the right super product is also assessing the ethical nature of investments. The idea of your super investments helping to make the world a better place is hugely appealing, knowing that your money has the ability to support companies and industries that are making a positive impact on communities and on our environment.
It’s important to remember this can come at the cost of reduced returns or higher fees, so make sure to view the product disclosure statement (PDS) for more information.
As always we're here to help you on your way to achieving your financial goals and our financial advisers can help you navigate these investment decisions, or you can also visit moneysmart.gov.au for some super tips.
This article is intended to provide general information of an educational nature only. Information in this article is current as at the date of publication. We do not recommend any third party products or services and we are not liable in relation to them. Any links to third party websites are for your information only and we do not endorse their content.
