It’s never too early to begin planning for a successful retirement.
The sooner you can take control of your financial future, the better!
What is superannuation (super)?
Simply put, superannuation is money that’s put aside and saved during the course of your working life. It’s purpose is to provide you with an income later when you retire from the workforce. In effect, building your super is building a “nest egg” to live on, and the larger that nest egg, the more you’ll be able to spend in your retirement.
If you are employed by a company or organisation, your employer is responsible for making mandatory super payments (Super Guarantee) into your superannuation fund account. You can also elect to pay additional contributions to your super over the course of your working life, to increase the balance.
In general, you can access your super once you have retired and have met the criteria for release (you need to be at least 60 years old for your super to be tax-free). In extenuating circumstances, superannuation may be released prematurely.
There are 3 main types of superannuation funds you can choose from to grow your super:
1. Retail Super Fund
2. Industry Super Fund
3. Self-Managed Super Fund (SMSF)
We can help you understand the benefits and risks of each type of superannuation fund, to better determine which might suit your individual circumstances.
We can also offer a full financial planning solution for your SMSF through our financial planning branch, Black & White Financial Solutions Pty Ltd.
Setting yourself up for retirement
When should you retire? Deciding when to retire isn’t just about money – finding your purpose once you’re retired and feeling a sense of belonging is equally as important.
There are different Transition to Retirement (TTR) strategies that you can consider when you are ready to take the leap into retirement.
How much do you need to retire? How much you will need in retirement is going to look different for everyone. You need to ensure you can meet the needs of your chosen lifestyle. This includes taking your income and expenses into consideration, along with your financial & lifestyle goals. Making sound investment choices based on these individual factors will be the difference between a ‘just comfortable’ retirement and an exceptional one.
How should you use your super? Deciding what to do with the nest egg you’ve built after so many years is one of the biggest decisions you will make. Talking with an experienced adviser prior to making that decision is a smart move – your personal circumstances
need to be taken into consideration, along with what options are available to you in terms of investing or spending.
How many super funds are you in? There’s a good chance you are probably not keeping track of where your money is invested. Consolidating your super into one account means you are put back in control of your retirement savings. Consolidating your super can also save you from losing money, avoiding hidden account-keeping fees.