May 04, 2016
"Check Super", has this been on your "to do list" for a while now? Checking your super is one of the least sexy financial items we have on our agenda's. Can't say I've ever heard anyone say "You had me at... I've got a great super fund". Regardless, super is one of those things that we just need to do, because the pay off's are huge.
I want everyone to be a "super hero", so that when we hit 50, we can tell our grandkids we walked to school in the pouring rain, and invested in our superfunds, and that's why they are out here on our private yachts, eating gelato.
Here are some easy steps to get you on track:
Steps to be a Super Hero
- Look at your statement, make sure you understand it and ask questions if you don't. Check the amount on your payslip matches the amount on your super statement. There's missing cash floating around everwhere, make sure you are on top of yours
- Check your fees (member fees, management costs, withdrawal costs, contribution costs, termination fees, service fees, insurance premiums) and shop around for a better super fund if necessary - make sure you know what you are paying for
- Consolidate your super - if you have changed jobs frequently, you probably have a few super funds out there, find them and consolidate
- Find lost super
- Check benefits (extra employer contributions, redundancy benefits)
- Review your budget and see if you can pay more into your super (If you don't need to withdraw from it till you retire)
- Review the investment options in your super and make sure it aligns with your goals and risk, change this if your super has not performed well over five years.
- Review the insurance options (automatic cover or medical exam required, life insurance cover, TPD Cover, salary cover, restrictions to claims)
- Check your beneficiaries - You may have filled out so many forms when you first started your job and didn't realise how these all impacted you, here we are now and your beneficiary is your ex! Yikes - check this and make sure its accurate.
- Retirement planner - If you are in your 30's, it's time to start thinking about this. Make sure you are setting yourself up for a happy little nest egg and lifestyle when you retire
- Put it in your calendar to check your statements quarterly for payments, fees and contributions
Who wants free money?
If you are earning less than 37k pa, you could be eligible to receive an extra $1000pa from the government to your super.
The government will put in 50c for every $1 you contribute this financial year up to $500.
To get the maximum $500 per year, you need to put in $1,000 per year as an after tax contribution.
If you earn less than $35,454 the maximum co-contribution is $500 based on $0.50 from the government for every $1 you contribute. And just like that - you've made a 50% return on your money! The amount of the co-contribution reduces the more you earn.
Low income super contribution
If you are eligible and earn $37,000 or less per year, the government may make a further contribution to your super. This amount, up to $500 annually, will be 15% of the before-tax contributions you or your employer made to your super account during the financial year.
OK guys, go get your super sorted. Drop us a line if you have any questions. email@example.com