Your Superannuation and how you much you have in retirement could mean the difference between living comfortably and just making do.
We don’t all think about our super as a huge priority early in our working careers, but it’s what we do with our super and the choices we make early on, that can alter the outcome later in life and impact your level of retirement.
There are also many options surrounding super for people who might be in their 40s or 50s and perhaps haven’t had the opportunity to do much with their super but want to make the most of what they can while they can.
So how do we do it?
Strategies For Life has a range of strategies that can help you make the most of your super… not just while saving for your retirement later in life, but earning money early on to ensure you maximize every opportunity to make it work for you.
Client Scenario
Superannuation strategy to maximise growth
Peter is married with two young children. He is thinking about the best way to maximise his super while receiving a good salary and has little debt. His focus is on ensuring he can provide well for his family, not only now but in retirement.
Our Solution
Strategies For Life sat down with Peter to discuss his options and create a strategic plan that he can consider to maximise his super. Some of the key topics they discussed were:
- Invest in super – The tax savings of super are not limited to contributing.
- Make the most of tax concessions – As there is no limit on the amount of super you can receive tax-free in retirement, it could be worthwhile for Peter to put as much money into super as he can.
- Use Government incentives to your advantage – Peter may be positioned to make post-tax contributions to his eligible spouse’s account, provided their income does not exceed the relevant threshold.
- Contribute and save on tax – You pay only 15% on contributions to super, but usually a much higher rate on your salary. If Peters’s Marginal Tax Rate is above 15%, he could contribute to his super and pay less tax.
- Contribute to super and keep your take-home pay – Depending on circumstances Peter may be able to gradually increase his contributions to super, without a noticeable effect on his take-home pay packet.
Strategies For Life can help design the most suitable strategy that suits your circumstances to ensure your goals are reached within your timeframe.