DO YOU need?
For many people, superannuation is the single largest financial asset they have, apart from the family home, so it pays to take it seriously. Studies by Superguide show that a single person who has paid off the home loan will need around $43,000 p.a. to enjoy a comfortable standard of living. 1Over a typical 25-year retirement, this adds up to $1,073,000. Nor can you rely on the Age Pension to support you. Currently the maximum pension entitlement (subject to deeming rules), provides just $22,805 2for a single person, or around half the amount recommended for a comfortable retirement. BUILDING ON YOUR EMPLOYER CONTRIBUTIONS
If you are working, your employer should already be making regular contributions into your super account of at least 9.5%. So will this be enough to give you the retirement you desire? Not according to the Association of Superannuation Funds of Australia (ASFA). ASFA suggests that you should be saving around 12% – 15% of your salary over a 30-year period as a minimum savings target. HARNESSING THE BENEFIT OF COMPOUND INTEREST
• Government Co-contributions If you are a low or middle-income earner, you may be eligible for a government co-contribution, up to a maximum of $500. The amount you receive will depend on your income and the size of your own after-tax contribution. • Salary Sacrifice Salary sacrifice is a personal contribution that is made directly from your pre-tax salary and can be a tax-efficient way to boost your super. 1
This information is general information only. You should consider the appropriateness of this information with regards to your objectives, financial situation and needs.This information has been compiled from sources considered to be reliable, but is not guaranteed. Sunshine Coast Financial Planning ABN 34 133 955 736 [t/a Infocus Money Management] is a Corporate Authorised Representative of Infocus Securities Australia Pty Ltd ABN 47 097 797 049 AFSL No. 236523 t/a Infocus Money Management and Infocus Financial Advice. m
To achieve the recommended ASFA savings, you may need to make some additional super contributions. The key is to start early, because the earlier you add funds, the longer it has to grow and work for you. Super grows through investment earnings and the benefit of compound interest, which allows you to earn interest on your interest. GREAT OPTIONS FOR GROWING YOUR SUPER Once you’ve decided to give your super a boost, the next question is…how? Fortunately, there are a few different options to consider: • Post-Tax Contributions Making voluntary contributions from your after-tax pay is a simple way to top-up. Simply deposit your own money into your super.
Shaun Long, Financial Adviser, Infocus Shaun has recently brought vast experience in the Financial Advice industry to the Sunshine Coast, having worked in the Wide Bay region since 2003. He has developed expertise in the pre-retirement field and truly enjoys guiding a diverse range of clients towards achieving their financial and lifestyle goals.
What’s important to you is important to us We understand how important it is for you to make the right decision when it comes to achieving your financial goals and we would love to offer you a no obligation initial appointment (valued at $330) to discuss your aspirations and financial goals. Drop by for a coffee and a chat with one of our Financial Advisers today! Our receptionist Rihann will be happy to book a time that suits you best.
07 5443 4311 www.infocus.com.au/sunshine-coast
Sunshine Coast Financial Planning Pty Ltd ABN 34 133 955 736 is a Corporate Authorised Representatives of Infocus Securities Australia Pty Ltd ABN 47 097 797 049 AFSL and Australian Credit Licence No. 236523 www.bmmag.com.au
25 MONEY MANAGEMENT MATTERS
HOW MUCH SUPERANNUATION
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