Many people think that their employer is taking care of their super and that they do not need to do anything else. However, for most people those regular contributions may not be enough to retire comfortably.
There are several ways to boost your super, save tax and retire more comfortably.
In most cases, employers are required by law to contribute a mandatory 9.5% of our salary into their employees super fund. This is called the Superannuation Guarantee.
Salary sacrifice contributions
Salary sacrificing your super contributions involves paying some of your before-tax salary in to your super account. Contributions are usually taxed at 15%.
Personal deductible contributions
Personal deductible contributions are contributions in which you make to your own super which you can claim a tax deduction in your tax return. They are an alternative to salary sacrifice.
Personal after-tax contributions
These are contributions that you make into your super for your take-home pay (not your before-tax salary).
These contributions are made into your spouse’s super account on their behalf. These can also be contributions that your spouse makes into your own account.
The government co-contribution is a bonus super contribution from the government. It has been specifically created for lower income earners to assist in boosting their retirement savings.
Information provided is general advice only and does not take into account your personal objectives, financial situation or needs. Before acting on this information you should consider the appropriateness of the information having regard for your own circumstances, personal objectives, financial situation and needs. When deciding whether to acquire or continue to hold a financial product(s), you should first obtain and consider the Product Disclosure Statement(s), Information Statement(s) and/or other relevant product documentation relating to that product(s).
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