Is There a Superannuation Solution On the Gold Coast?

You would be forgiven for saying that you’ve forgotten about your superannuation after many of us lost out during the global financial crisis. With all of this behind us, does that mean we should all be abandoning our super funds in lieu of other methods of retirement security? The most common question asked about superannuation, apart from “where is my super?”, is if a fund is doing what it’s supposed to.

With frequently changing legislation it’s a difficult measure to track how your super is performing and what level of interaction you’re allowed to have with it. Unequivocally a superfund is designed to support us after we have left the workforce but are there more things we can do now to ensure the fund is as sound as possible when we need it the most?

The first step in ensuring your super is doing its utmost is to know what type of fund you have. A quick search can lead you down the rabbit-hole and you can begin assessing, at least on face value, if you’ve got the right type of fund working for you. It’s also worth noting whether you hold an accumulation fund or a defined benefits fund.

Common Super Funds:

• MySuper
  
• Retail Funds
  
• Industry Super Funds
  
• Public Sector Funds
  
• Corporate Funds
  
• Self-Managed Super Funds
  
• Defense Super Funds
  

Once you’ve found what type of fund you’ve either chosen or what type of fund your employer provides as a default, you must then begin noting the different expenses associated with holding your super with that company.

Should you discover that your chosen fund is prone to higher fees and lower returns for investment, it might be time to consider moving to a different fund. Remember that before taking any action it will always be worth referencing your trusted financial advisor. The Zenon Group also provides a range of services in regard to superannuation solutions on the Gold Coast if you’re inclined to visit.

Now that you understand a little more about how your fund works and the fee’s associated with being a member, the next is to understand what kind of contribution taxes you may be exposed to. As most Australians have accumulation based super funds, we the most common tax experienced is on before-tax super contributions made by an employer which is taxed at 15% currently.

A shining light in this situation is that if you choose to make after-tax or additional contributions to your super, these additional funds are not subject to tax. Also if you choose to make what is considered to be excessive superannuation contributions through your fund, you may be charged additional tax, which is 47% of the excess you’ve paid into your super. If you’re curious to know what your contributions cap is, you will find a supplement on the ATO website.

The final part of understanding your super is weighing up your preservation age that allows you access to your fund and considering your opportunity and cost’s when thinking of making additional contributions.

Tick the boxes and make sure that your superannuation fund is working for you rather than lining the pockets of others and importantly consider if making additional payments toward your super at a younger age is in your best interests opposed to addressing additional funds later in life.

With a little elbow grease, advice from the right parties and an open mind, you’ll be sure to have your super performing as best it can!