{"id":4837,"date":"2021-02-15T12:04:11","date_gmt":"2021-02-15T01:34:11","guid":{"rendered":"https:\/\/adelaideprivatewealth.com.au\/5-ways-to-boost-your-super\/"},"modified":"2021-02-15T12:04:11","modified_gmt":"2021-02-15T01:34:11","slug":"5-ways-to-boost-your-super","status":"publish","type":"post","link":"https:\/\/adelaideprivatewealth.com.au\/5-ways-to-boost-your-super\/","title":{"rendered":"5 ways to boost your super"},"content":{"rendered":"<div>\n<p>Did you know it\u2019s likely you\u2019ll spend up to\u00a0<a href=\"https:\/\/www.moneysmart.gov.au\/superannuation-and-retirement\/how-super-works\/super-contributions\/how-much-is-enough\" target=\"_blank\" rel=\"noopener noreferrer\">two decades or more in retirement<\/a>? It\u2019s a long time, so will you be able to afford all the things you\u2019ve thought of doing in retirement, before your savings run out?<\/p>\n<p>By starting now and making small changes to how you approach your super savings, you can get closer to the retirement you\u2019d like \u2013 and hopefully make your savings last longer.<\/p>\n<p>Note: Some of the strategies explained below are subject to your total super balance cap (combined value of your accumulation and pension accounts). For more information visit the\u00a0<a href=\"http:\/\/www.ato.gov.au\/\" target=\"_blank\" rel=\"noopener noreferrer\">ATO website<\/a>\u00a0or contact your financial adviser. In the meantime, here are five strategies to help you build a bigger super balance.<\/p>\n<h3>1. Consider consolidating your super funds<\/h3>\n<p>If you\u2019ve moved jobs or done casual work over the years, you might have money in several super funds. One super account means less paper work and not having to manage multiple super accounts.<\/p>\n<p>There are a few things to think about before you consolidate your super:<\/p>\n<ul>\n<li>\n<p>Weigh up the benefits and features of your other super funds against your chosen super account.<\/p>\n<\/li>\n<li>\n<p>Check the tax implications and see if your tax and preservation components will be impacted. Speak to your financial adviser for further information.<\/p>\n<\/li>\n<li>\n<p>Compare the fees of your funds and check for exit or termination fees.<\/p>\n<\/li>\n<li>\n<p>Don\u2019t forget your insurance. Check if your chosen super account will give you appropriate cover to replace any cancellation of insurance cover that will occur by consolidating your accounts. Appropriate insurance can include level and types of cover as well as policy terms. If you have a pre-existing medical condition, consider whether you\u2019ll be eligible for the same level of cover if you cancel your existing insurance policy.<\/p>\n<\/li>\n<li>\n<p>If you intend to claim a tax deduction for personal contributions made into your other fund, there\u2019s something you need to do first. Ensure your \u201cNotice of intent to claim a deduction for personal contributions\u201d is made and acknowledged by that fund. For more information about eligibility and\/or to obtain this form please visit the\u00a0<a href=\"http:\/\/www.ato.gov.au\/\" target=\"_blank\" rel=\"noopener noreferrer\">ATO website<\/a>.<\/p>\n<\/li>\n<li>\n<p>If you consolidate your super, you\u2019ll have fewer funds to manage and it\u2019ll be easier to keep track of your retirement savings.<\/p>\n<\/li>\n<\/ul>\n<h3>2. Make personal contributions<\/h3>\n<p>By making a personal super contribution and claiming the amount as a tax deduction, you may be able to pay less tax and invest more in super. The contribution will generally be taxed in the fund at the concessional rate of up to 15 per cent instead of your marginal tax rate which could be up to 47 per cent, including the Medicare Levy. Additional 15 per cent tax applies to concessional super contributions if your combined income and concessional contributions exceed $250,000. Visit the\u00a0<a href=\"http:\/\/www.ato.gov.au\/\" target=\"_blank\" rel=\"noopener noreferrer\">ATO website<\/a>\u00a0to check the latest tax rates.<\/p>\n<p>This strategy could result in a tax saving and enable you to increase your super balance.<\/p>\n<p>To claim the super contribution as a tax deduction, you need to submit a valid\u00a0\u2018Notice of Intent\u2019\u00a0form. You\u2019ll also need to receive an acknowledgement from the super fund. You\u2019ll need this before you complete your tax return, start a pension or withdraw or rollover money from the fund you made your personal contribution to. It\u2019s generally not tax-effective to claim a tax deduction for an amount that reduces your taxable income below the threshold at which the 19 per cent marginal tax rate is payable. This is because you would end up paying more tax on the super contribution than you would save from claiming the deduction.<\/p>\n<p>We recommend you see a financial adviser or tax consultant to get the right advice for you.<\/p>\n<h3>3. Salary sacrificing<\/h3>\n<p>You might also be able to reduce your tax and boost your super balance through\u00a0<a href=\"https:\/\/www.nab.com.au\/personal\/life-moments\/work\/plan-retirement\/salary-sacrifice\" target=\"_blank\" rel=\"noopener noreferrer\">salary sacrifice<\/a>. This\u00a0is an agreement with your employer to contribute a certain amount of your pre-tax salary or potential bonus into your super. The word sacrifice doesn\u2019t really make this strategy sound appealing, but it has some great benefits.<\/p>\n<p>Instead of being taxed at your marginal tax rate, these contributions are generally taxed at the concessional rate of up to 15 per cent (an additional 15 per cent tax applies to concessional super contributions if your combined income and concessional contributions exceed $250,000). For example, if you earn $95,000 a year, you could save up to 24c in every dollar sacrificed.<\/p>\n<p>If you\u2019re a high income earner, you\u2019ll be taxed an extra 15 per cent on your before-tax contributions (30 per cent in total). However, this is still lower than your marginal tax rate of 47 per cent (including the Medicare Levy).<\/p>\n<p>Making before tax contributions to super can be a tax effective way of building wealth. Before tax (or concessional) contributions also include mandatory contributions made by your employer and are capped at $25,000 per year regardless of your age. Penalties apply for exceeding the cap.<\/p>\n<p>The Government\u2019s\u00a0<a href=\"https:\/\/moneysmart.gov.au\/\" target=\"_blank\" rel=\"noopener noreferrer\">MoneySmart<\/a>\u00a0website has a great super contributions optimiser calculator that can give you an idea of how salary sacrificing can affect your super and take home pay.<\/p>\n<p>If you like the idea of salary sacrificing, it\u2019s a good idea to discuss it with your employer and see if you can make an arrangement with them to do this.<\/p>\n<p>You should also seek advice from a tax agent or speak to your financial adviser to determine if this strategy suits your financial situation.<\/p>\n<h3>4. Make after-tax super contributions<\/h3>\n<p>Maybe you\u2019ve received an inheritance, a bonus, or sold an asset? If you are considering making non-concessional (after-tax) contributions to your super, there are important things to consider. The after-tax contributions cap is $100,000 pa, or up to $300,000, if you bring\u00a0<a href=\"https:\/\/www.ato.gov.au\/super\/self-managed-super-funds\/contributions-and-rollovers\/contribution-caps\" target=\"_blank\" rel=\"noopener noreferrer\">forward two years\u2019 worth of contributions<\/a>. To be eligible to make non-concessional contributions, certain requirements must be met. For more information visit the\u00a0<a href=\"http:\/\/www.ato.gov.au\/\" target=\"_blank\" rel=\"noopener noreferrer\">ATO website<\/a>\u00a0or contact your financial adviser.<\/p>\n<p>Government super co-contributions also help eligible people boost their retirement savings. If you\u2019re a low income earner and you make personal (after-tax) contributions to your super fund, the government also makes a contribution (called a co-contribution) up to a maximum amount of $500.<\/p>\n<p>The amount of government co-contribution you receive depends on your income and how much you contribute. When you lodge a tax return, the ATO will work out if you\u2019re eligible. If the super fund has your tax file number (TFN) they\u2019ll pay it to your super account automatically. The way your co-contribution is calculated depends on the financial year in which you made your personal super contributions. You can visit the ATO website for specific income levels and amounts.<\/p>\n<p>You may be able to make after-tax contributions to your super before you turn 65 even if you\u2019re not working. After 65, you\u2019ll need to meet a \u2018work test\u2019 each financial year to be able to make after-tax contributions (you\u2019ll need to have worked 40 hours over a consecutive 30 day period), or are eligible for the work test exemption.View Disclaimer\u00a0<a href=\"https:\/\/www.nab.com.au\/personal\/life-moments\/work\/plan-retirement\/boost-super\">1<\/a>\u00a0And you can\u2019t make after-tax contributions once you\u2019re 75.<\/p>\n<h3>5. Top up your spouse\u2019s super<\/h3>\n<p>Is your spouse working part-time, earning a low income or currently not working (but not retired)? If so, you may both be able to benefit by making a \u2018spouse contribution\u2019 to their super account. In the 2017\/18 financial year, if your spouse\u2019s assessable income is less than $40,000 and you make a spouse contribution on their behalf into their super account, you\u2019ll receive a tax offset of up to $540 a year. Other eligibility criteria apply.<\/p>\n<p>You should also seek advice from a tax agent or speak to your financial adviser to determine if this strategy suits your financial situation.<\/p>\n<h3>Seek professional advice<\/h3>\n<p>Remember the tax and super systems are complex and subject to change, and everyone\u2019s financial situation is different. So before making any major changes make sure you speak to your\u00a0financial planner.<\/p>\n<p>Please contact us on Phone 02 4342 1888 if you seek further assistance on this topic.\u00a0<\/p>\n<p><span style=\"font-size: 10px\">1 An exemption from the work test is available from 1 July 2019. The exemption allows you to make voluntary contributions to your super without the need to satisfy the work test, for one financial year only. This is available to recently retired individuals aged 65 \u2013 74, who have a total super balance less than $300,000 (prior to the most recent 30 June), and met the work test for the previous financial year. Also, this can only be applied once in your lifetime.<\/span><\/p>\n<p><span style=\"font-size: 10px\"><a href=\"https:\/\/www.nab.com.au\/personal\/life-moments\/work\/plan-retirement\/boost-super\" target=\"_blank\" rel=\"noopener noreferrer\">Source : Nab Januaury 2021\u00a0<\/a><\/span><\/p>\n<p><span style=\"font-size: 10px\">Reproduced with permission of National Australia Bank (\u2018NAB\u2019). This article was original published at\u00a0https:\/\/www.nab.com.au\/personal\/life-moments\/work\/plan-retirement\/boost-super<\/span><\/p>\n<p><span style=\"font-size: 10px\">National Australia Bank Limited. ABN 12 004 044 937 AFSL and Australian Credit Licence 230686. The information contained in this article is intended to be of a general nature only. Any advice contained in this article has been prepared without taking into account your objectives, financial situation or needs. Before acting on any advice on this website, NAB recommends that you consider whether it is appropriate for your circumstances<\/span><\/p>\n<p><span style=\"font-size: 10px\"> \u00a9 2020 National Australia Bank Limited (\u201cNAB\u201d). All rights reserved. <\/span><\/p>\n<p><span style=\"font-size: 10px\">Important: Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author. Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents\/information contained within the linked site(s) accessible from this page.<\/span><\/p>\n<p><span style=\"font-family: Roboto, RobotoDraft, Helvetica, Arial, sans-serif;font-size: 13px\">\u00a0<\/span><\/p>\n<p>The post <a rel=\"nofollow\" href=\"http:\/\/mlcsocialfeed.p2.clientcommunity.com.au\/latest-articles\/5-ways-to-boost-your-super\">5 ways to boost your super<\/a> appeared first on <a rel=\"nofollow\" href=\"http:\/\/mlcsocialfeed.p2.clientcommunity.com.au\/\">MLC Contemporary<\/a>.<\/p>\n<\/div>\n<p class=\"wpematico_credit\"><small>Powered by <a href=\"http:\/\/www.wpematico.com\" target=\"_blank\" rel=\"noopener noreferrer\">WPeMatico<\/a><\/small><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Did you know it\u2019s likely you\u2019ll spend up to\u00a0two decades or more in retirement? It\u2019s a long time, so will&#8230;<\/p>\n","protected":false},"author":4,"featured_media":4838,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[15],"tags":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>5 ways to boost your super - Adelaide Private Wealth<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/adelaideprivatewealth.com.au\/5-ways-to-boost-your-super\/\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"asim_stellar\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"8 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/adelaideprivatewealth.com.au\/5-ways-to-boost-your-super\/\",\"url\":\"https:\/\/adelaideprivatewealth.com.au\/5-ways-to-boost-your-super\/\",\"name\":\"5 ways to boost your super - 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