We think any time is a good time to review your super. If you’re years from retirement, you may not think it’s important, but your super is one of the biggest assets you have over your lifetime. It deserves your attention.
There are some key life moments we’ll discuss below but it’s also worth considering the following:
Fees – are the fees you’re paying competitive and worthwhile? Low fees don’t necessarily mean it’s the best fund. The performance of the fund should also be a consideration.
Performance – is the fund performing in line with your expectations? The growth you see will depend on how you have invested your funds.
Insurance – is there insurance held within your super? Does it offer you the right level of cover?
Investment options – is there a range of investment options and one that suits you and your goals?
YOU’VE HAD A MAJOR CHANGE IN YOUR LIFE
We recommend that you visit your Financial Adviser when you experience any major change in your life change. This could include the start or end of a serious relationship birth or adoption of a child, buying or selling property, changing jobs, and when you receive a financial windfall.
Each of these events may have an impact on your finances so is a good time for you to review your overall situation, including your super. What are some of the impacts?
You’ve had a change in your relationship
Spouse contributions can be used to help top up the super of a low-income partner and the spouse contributing could receive a tax offset. This provides a double benefit of topping up super and gaining a possible tax offset.
Should the relationship end, these contributions may end and alternative strategies should be considered to continue building the super fund.
You have bought or sold a property
As well as being a huge financial investment, the buying and selling of a home is going to have an impact on your finances. Any insurance (especially that held inside of super) should be reviewed at this point. You’ll want to ensure that your insurance covers at least the cost of the mortgage, and if you no longer have a mortgage, you won’t need that level of cover so you could consider reducing your cover.
You’ve changed jobs
With the recent proposal of your super being ‘stapled’ to you as you change jobs, you’ll more than likely to take your super with you when you change jobs. It’s a good idea to review the employer’s default fund as it may provide options you don’t currently have, or have but pay for.
A change in income can affect your salary sacrifice contributions, you should check that you don’t exceed the contributions cap (currently $27,500 for personal contributions). If you’re not currently salary sacrificing, a rise in your wages may be the ideal time to start.
YOU’VE HAD A FINANCIAL WINDFALL
An expected or even unexpected windfall can have a great impact on your financial situation. Investing this money in your super and other types of investment can help you build for your future. You should discuss this with your Financial Adviser as you’ll need to be mindful of contribution caps and ensure you’re invested in a way that aligns to your investment style and your goals.
YOU HAVE SOME MONEY LEFT OVER
If you’re lucky enough to have a little left over at the end of your pay cycle, you may want to consider salary sacrificing. This involves taking a little of your pre-tax money and moving it into your super, boosting your super savings and possibly reducing your tax liability. You’ll need to be mindful of the concessional contributions cap, currently $27,500. The cap includes the contributions from your employer as well as any contributions you make.
If you’re thinking about moving these funds to your mortgage, take a look at our Super vs Mortgage page where we explore both options and their pros and cons.
YOU’RE STARTING TO THINK ABOUT RETIREMENT
It’s never too late to start preparing for your retirement, and there are many ways to maximise your super before the day arrives. The government has put in place a number of options for those wishing to grow their super such as a Transition to Retirement strategy, downsizer and bring forward contribution rules.
CONCLUSION
If you would like to review to your super, we can help. A review will include understanding your goals, your current situation and your attitude towards investment, among other things. We’ll ensure the right super fund is selected for you to meet your needs now, and in the future. With ongoing advice, we’ll review your super fund on a regular basis and make sure it’s working for you.
It is very important that you understand that the information above is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser. It is also worth noting that the Australian financial and taxation system is ever changing, and the information above may no longer be relevant. Again, we suggest seeking professional advice from a financial adviser before proceeding.