Superannuation
Live life on your terms
If you’re working, chances are you have a Superannuation account, possibly more if you’ve changed jobs without consolidating. But many don’t understand why they have one or what it does.
While retirement might not be near, contributing to your super now is a tax-effective investment. Most super contributions and their earnings are taxed at concessional rates, with the benefit of compounding returns.
In simple terms, super contributions are taxed at lower rates, with earnings on earnings. Super is a smart way to save.
So why do many neglect it? Despite often being the second largest investment after the family home, most just tick a box.
At Coastline, we aim to show the relationship between ‘superannuation’ and ‘investing’. They go hand in hand; like any relationship, super and your investment need attention.
Taking charge of your super and getting the right investment mix could mean early retirement or a longer working life.
How we help
Review your current super fund's performance and proximity to retirement.
Recommend changes to your super arrangements.
Suggest alternative fund providers and products.
Assess insurance opportunities, including purchasing insurance through your super fund.
Why do super investment options matter?
Like any other investment, your super offers choices. Depending on your risk tolerance and time until retirement, you can invest in different asset classes. It’s your money, and you have the right to choose how it’s invested.
Understanding your investment options is crucial to finding what works best for you. Coastline can help you explore different strategies to grow your super for long-term financial gain.
Self-Managed Super Funds (SMSFs)
Self-managed superannuation funds (SMSFs), or DIY super funds, are popular among Australians who want to manage their retirement savings independently.
SMSFs operate similarly to other funds, where contributions are invested and become available to members upon retirement. However, with SMSFs, members also act as trustees, giving them control over how contributions are invested and benefits are paid.
While SMSFs can be an attractive option for managing your super, seeking advice from a reputable source is crucial. While having autonomy over your finances may seem appealing, there’s a risk it could be more costly in the long term.
SUPER SIMULATOR TOOL
Check out the Super Simulator tool to better understand whether your retirement nest egg is big enough. More importantly, call 5264 7700 to speak to one of our Financial Advisers to ensure your retirement dreams can become your reality.
About coastline Advice
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We take the time to understand you and the life you want to lead.
We partner with you on your journey and life’s major milestones.
We provide informed financial advice to get you where you want to be.
Frequently Asked Questions
Is superannuation taxed?
Yes, superannuation is taxed, but it enjoys favourable tax treatment to encourage retirement savings. Contributions made into superannuation are generally taxed at a concessional rate of 15% (or 30% for high-income earners) when they enter the super fund, which is lower than most individuals’ marginal tax rates.
Withdrawals from superannuation are typically tax-free after reaching preservation age and meeting a condition of release, such as retirement. For help with your superannuation, call 5264 7700 to speak to one of Coastline’s financial Advisers.
What are the different investment types within superannuation?
Australian superannuation funds offer a range of investment options including cash and cash-like investments, fixed interest or bonds, Australian shares, international shares, property or real estate, alternative investments like infrastructure and commodities, and lifecycle or target date funds.
It’s important to review these options, considering your risk tolerance and investment goals, and consult with a financial adviser to optimize your superannuation strategy.
When can I access my super?
Under Commonwealth provisions, a portion of your superannuation must typically be preserved until you meet specific conditions, such as ceasing employment at age 60 or retiring permanently from the workforce at or after your preservation age (which falls between 55 and 60, depending on your birthdate). This effectively means that you cannot access your superannuation funds until you fulfill one of these conditions of release.
Why is it important to consolidate my super?
Consolidating your superannuation is important to reduce fees, simplify management, avoid lost super, potentially improve investment performance, and make beneficiary management easier. To consolidate your super, call 5264 7700 to speak to one of the financial advisers at Coastline Advice.
Do you need to consolidate your super?
If you’ve had more than one job, you probably have more than one super account. Over the years you may have lost track of some of them. Bringing your super together into one account (commonly known as consolidating) could save you money and get your super savings back on track.
A simple consolidation service will help you round up lost super.
How to set up the risk profile for your super
Setting up the risk profile for your superannuation involves assessing your risk tolerance and investment goals. Evaluate your comfort level with risk based on factors like investment experience, financial goals, and time horizon until retirement.
Choose a superannuation investment option that matches your risk tolerance, ranging from conservative (lower risk, lower return) to growth (higher risk, higher return). Speak to one of the financial advisers at Coastline Advice for guidance on optimising your superannuation investments.
Should I contribute extra to my super through salary sacrificing?
Salary sacrificing into your super can be a smart way to boost your retirement savings. It involves making additional contributions from your pre-tax income, which may reduce your taxable income and lower your tax bill. These contributions are taxed at a concessional rate of 15%, potentially saving you money compared to your marginal tax rate. It’s a strategy to consider if you want to take advantage of compound interest and build a larger retirement fund. However, it’s wise to speak to a financial adviser at Coastline Advice to assess your financial situation and see if salary sacrificing aligns with your goals and needs.
How can I boost my super balance?
You can boost your super balance by making salary sacrifice contributions, which are taxed at a concessional rate of 15%, reducing your taxable income. Making personal after-tax contributions allows you to claim a tax deduction and may qualify you for a government co-contribution if eligible.
Consolidating multiple super accounts can reduce fees and simplify management, while reviewing your investment strategy ensures it aligns with your retirement goals. Contributing to your spouse’s super or adjusting insurance needs within super can also optimize your strategy. Speak to one of Coastline’s Financial Advisers to help tailor a plan to maximize your super balance based on your situation and goals.
What is the government co-contribution?
The government co-contribution is a matching contribution by the Australian government to your super when you make personal after-tax contributions and meet certain criteria. It is aimed at helping low to middle-income earners save for retirement. To qualify, you must earn below the income threshold, be under 71 years old, and lodge a tax return.
The government will match a portion of your contributions up to a maximum amount. This co-contribution is adjusted annually, so it’s essential to check the current thresholds on the Australian Taxation Office (ATO) website to see if you qualify. Before making contributions, speak to one of the financial advisers at Coastline Advice to ensure you are maximising your potential and meeting your goals.
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