Top 5 superannuation tips to make your life easier
1. Make sure you Super fund has your tax file number
Want to save yourself mindless fees and not be taxed at such a high rate? Make sure you have provided you’re super fund with your Tax File Number.
Its as simple as that…just provide your tax file number. You’ll thank me later.
And while you’re at it, make sure all your details re up-to-date and correct. This will save you a lot of hassle down the track.
Your name, address, date of birth, etc – make sure they are all correct.
2. Combine your super into one account
I cannot even begin to tell you how important this is.
COMBINE YOUR ENTIRE SUPER INTO ONE ACCOUNT!
This not only saves you possibly hundreds in account fees, but it means your super is all together and you know exactly how much you have.
If you’ve held numerous jobs over the years, its very possible you have more than one super account. But consolidating your super accounts, it makes you’re life much easier when you plan on retiring. So find you’re lost super and put it all in one account!
It’s so easy to check if you have lost super, simply visit the ATO website and create a MyGov account.
If you know exactly where you’re extra super accounts are, it’s even easier to combine your super accounts. Simply call your preferred Super and ask them to begin the process for you.
3. Identify your dependents and non-dependents
Bit of an eerie one, but make sure you know what happens to your super in the event of your death.
If you plan it now, and update your beneficiaries, you can save your family a lot of heartache and quite possibly thousands of dollars in tax.
By nominating a beneficiary, it allows you to have the peace of mind that your super is going to those who you want it to go too.
This is very important if you plan on leaving your super to a non-dependent, such as a financially independent adult child.
Check your details and make sure they are up-to-date!
4. Make concessional super contributions
This is not necessary but there is a lot of benefit to making concessional super contributions, especially while you’re young and can afford it.
Your super is your retirement. Every dollar in there helps when you really need it.
I’m not saying to sacrifice a whole paycheck, but a little bit could go a long way to boosting your retirement pot of gold.
Now, there is a lot of decisions around this.
Firstly, you have to know the difference between concessional contributions (before-tax) and non-concessional (after tax). Either way, they are both subject to contributions caps.
For the 2017/2018 year, the annual concessional contributions cap is $25,000 and these include your employer’s compulsory contributions, additional employer contributions, and any salary sacrificed contributions that you arrange for your employer to deduct from your before-tax salary.
The purpose of salary-sacrificing is yes – boost your super early. But there is also the added benefit of not being taxed as much on your net earnings at the end of the year.
Have a look into this if you can afford it.
5. Look at your super often; make sure you’re getting correct payments
This is a big one for all casual workers, students, and migrant workers. Actually, this is a big one for any employee.
Make sure you check your super account of a regular basis.
There have been a lot of employers in the last few years that have been doing the dodgy and not paying the correct amount of super into the accounts. You’re super is an important saving and you want to make sure you have your full entitlement.
Even if it’s once every couple of months or quarter, just have a quick look at your employer contributions and make sure those payments are going in.
If not, check with your employer. There may have been a technological issue. If there are still no contributions, you might need to chat to the Fair Work Ombudsman.