Super: make the most of a good thing

With more people retiring early and with life expectancy continuing to rise, Australians are now spending more than a quarter of their life in retirement. 

This is great for those looking forward to life after work, but it also emphasises the importance of planning carefully for retirement.

People need to think about how much they will need to be able to live the lifestyle they want in retirement.  It is terrible to think of someone running out of money in a person’s golden years, just when they were planning to sit back and enjoy the fruits of their labour.

Perhaps the ‘golden rule’ for retirement planning is for people to use the benefits already in the system.

Not too taxing

Superannuation is one of the most tax effective ways to save for retirement. It’s important for people to make sure their savings are working for them, and it’s never too late to start.

Even if a person is only 5-10 years away from retirement, a number of effective strategies put in place now can help them make up any shortfall in retirement savings.

People can boost their superannuation savings – and reduce their income tax bill – through ‘salary sacrificing’.  This is where someone ‘sacrifices’ some of their gross salary in extra employer contributions paid directly into that person’s super.  These extra contributions are made before tax, effectively reducing the amount of income tax the person pays and boosting the amount going into their super.

‘Spouse contributions’ are another possibility. If one partner has a lower income, they can build up their super with their partner contributing on his or her behalf.  These ‘spouse contributions’ can provide a tax offset of up to $540 for the contributing partner, provided the receiving spouse’s income is below a certain level.

Getting to work

Saving through super has been made even more attractive for people on lower incomes with the introduction of government co-contributions to super.  The Federal Government will contribute $1.50 for every $1 a person contributes into their super, up to a maximum co-contribution of $1,500 a year, for someone who earns up to $28,980 a year.  Everyone wants your super to have the best chance to grow!

Not everyone has all of their retirement savings invested in superannuation. Many people hold other assets outside of superannuation, such as investment properties, shares or managed funds that they intend to use to help fund retirement. A useful strategy for them may be to release some of their wealth now to increase their benefits in the future. 

By transferring assets from other sources into superannuation, people can take advantage of super’s favourably taxed environment and then use this wealth to help fund their retirement.

Planning for retirement is especially important for women who, on average, spend less time in the workforce than men, are more likely to work in part-time or casual positions and are more likely to have interrupted careers.

It’s important for people to make sure their super savings are working at their hardest.  An accredited financial planner can help people put plans in place to achieve security and quality of life for retirement.

To find out how to make the most out of your superannuation call 1300364 984 and ask for details of an ANS recommended and accredited financial planner or visit us online at http://www.amp.com.au/anglicannationalsuper

Who can join Anglican National Super?

Plan membership is available to everyone (along with their spouse and family members) employed with an Anglican Organisation or a select group of like-minded Christian organisations.

More information?

For more information please see your financial planner or:
• Contact your payroll department
• Phone Anglican National Super on 1300 364 984
• Phone the ANS Business Relationship Manager at AMP - Paul Willis on 02 9257 2694
• Go to http://www.amp.com.au/anglicannationalsuper

My Retirement Simulator

AMP’s “My retirement simulator” is a helpful tool, delivering answers to the quintessential retirement questions, “How long will my money last?” and “How can I make it last longer?”

By answering eight key questions, the simulator helps people to discover how much they can spend in retirement and how long their funds may last if they continue with their existing superannuation arrangements.  Even better, it shows how making some small changes now can make a big difference to a person’s retirement nest egg.

Members may access the simulator using their member number as log-in id. Non-members, visit the AMP website to get an idea of how the simulator works.

Any advice given is general only and has not taken into account your objectives, financial situation or needs.  Because of this, before acting on any advice, you should consult a financial planner to consider how appropriate the advice is to your objectives, financial situation and needs. This is a paid advertorial. 

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