Super for every situation

Spouse contribution splitting – Couples have the option to share some of their super contributions into their spouse’s account. There are various conditions on how much, when and what kind of contributions you can transfer to your partner. The benefits of sharing are that:

• You can even up your balances if one of you has more in their fund than the other; and
• As a couple, you may be able to access the super money sooner if it’s in the older partner’s account, since they’ll reach preservation age (60 years) earlier.

Spouse contributions – If your partner earns $40,000 or less, you may be able to claim a tax offset of up to $540 a year for making a super contribution on their behalf. As with spouse contribution splitting, terms and conditions apply.

Check in with your partner – As columnist Jon Glass writes, most of us will have around 10,000 days to fill after work. As a couple, you’ll want to make sure you’re on the same page with how you plan to spend your time. Consult with your partner on what retirement will look like for both of you.

Repay your mortgage or contribute to super – This is a common question among homeowners with a mortgage who are heading towards retirement. What’s right for you will depend on your individual situation. Reducing mortgage debt can save you interest costs but contributing to super can be tax effective. You’ll need to run the numbers for your own situation. A financial adviser can help if you’re unsure where to begin.

Home equity release – You may be able to use some of the equity in your home to provide a retirement income or to cover one-off expenses. There are various types of home equity release products, and they won’t be for everyone. But if you need extra funds and own your home, this may be an option to explore.

Downsizer contributions – If you decide to sell your home and are aged over 55, you may be eligible to contribute up to $300,000 of the sale proceeds into your super fund. This can be a useful way to boost your super balance ahead of retirement. Couples can contribute $300,000 each, meaning you can get a combined amount of $600,000 into the tax-advantaged super environment.

Factor in ongoing rental costs to your budget – If rent is likely to be an ongoing expense for you in retirement, you may need to save more to cover housing costs in retirement. Industry averages used to estimate how much you need in retirement often assume you own a home. For a more personalised assessment of your situation and needs, explore GoalTracker®, or speak to the member services team.

Contribute more to super – Adding more to your super fund is a great way to grow your super balance. Super is likely to be one of your largest assets by the time you retire. Building it up could go a long way to ensuring you have an adequate retirement income.

Clear other debts – While you may not have a home loan, you may have other debts to repay, such as credit cards and car loans. Interest expenses on these types of debts can be quite high, so it might make sense to clear them before contributing more to your super fund—but it will depend on your circumstances.

Super guarantee contributions – Most employees will receive 11.5% of their pay from their employer into their super fund. This is a sizeable amount of money and it’s worth taking an interest in where it’s invested and whether you’re making the most of it. Log in to your super account to check your balance and details.

Salary sacrifice – Your employer may allow you to direct some of your before-tax pay straight into super. Setting up an automatic transfer like this makes it easy to regularly contribute, which will help to more quickly build up your balance.

Find your lost super – You may have more than one fund if you moved around between employers. It might even be that you used to be employed and now work for yourself—in which case, it’s even more important to not lose track of any super. The good news is it’s easy to locate your lost super. Contact us or check the Australian Taxation Office’s searching for lost super webpage for more details.

Understand your super obligations – Self-employed and sole traders can decide when and how to pay into a super account. If your business is structured so that you’re a PAYG employee of your business, you may be required to make superannuation guarantee payments to yourself. Talk to your accountant about what is required for your business structure.

Super advantages – Even if you’re not required to pay super, there are benefits to doing so. For starters, you’ll be building a nest egg to provide an income for yourself in retirement. There are also tax deductions available for making personal contributions into super. Your future self will thank you for the efforts you make today to save.

Protected environment – It’s a worst-case scenario, but the reality is that about 5% of Australian businesses fail each year, according to CreditWatch. While everyone works hard and does their best to avoid the risks, saving through superannuation can help protect your personal assets if your business doesn’t work out. Super is generally protected from creditors in the case of bankruptcy, but it’s a complex area and legal advice is essential.