With the end of the financial year (EOFY) just around the corner, we wanted to share some helpful tips to make sure you’re making the most of your superannuation.
Your future self will thank you for taking a few minutes to read this!
Firstly, let’s talk about boosting your super with contributions:
- Consider making additional Concessional Contributions (pre-tax). These are taxed at just 15%, which could help lower your taxable income. It’s like giving less to the taxman and more to future you!
- If you haven’t maxed out your concessional contributions in previous years, you might be able to make ‘catch-up’ contributions if your super balance is under $500,000.
- Take advantage of Non-Concessional Contributions (after-tax). If you’re a low- or middle-income earner, the government co-contribution scheme is a great way to add to your super and get a bonus top-up from the government.
- If your partner’s income is on the lower side, contributing to their super could earn you a tax offset of up to $540. It’s a win-win!
- Consider Contribution Splitting with your spouse. This can help even out your super balances and potentially reduce the tax paid on super pensions in the future.
Now, let’s do a quick five-step super health check:
- Make sure your super is consolidated to avoid multiple fees eating into your retirement savings.
- Review your investment strategy to ensure it matches your risk tolerance and retirement goals.
- Check your insurance coverage through your super fund to make sure you’re adequately protected without unnecessarily eroding your balance.
- Nominate your beneficiaries to ensure your super goes to your loved ones as intended.
- Update your personal details with your super fund to stay informed.
By taking action on these tips, you’ll be setting yourself up for a brighter financial future. And if you’re feeling overwhelmed or need more guidance, don’t hesitate to reach out to a financial planner. We’re here to help make your EOFY planning a breeze!
Remember, a little bit of effort now can make a big difference down the road. So, take a deep breath, tackle those super tasks, and then give yourself a well-deserved pat on the back. Happy EOFY!
