Super reform won't change the basics of retirement planning

 With the end of the financial year approaching, Professional Associations Super says the basics of retirement saving won’t change, despite looming reforms to superannuation rules.

Megan Bolton, CEO of Professional Associations Super, said that over the coming years a number of legislative changes are likely to take effect as a result of the Australian Government’s Stronger Super initiatives.

“Despite any changes, people need to remember that the basics of retirement saving are still the same. This means that regardless of their age, occupation or income, it’s important for all Australians to review their financial position and ensure they’re making the most of their opportunities to build wealth,” Ms Bolton said.

For those who don’t know where to start, Ms Bolton says accessing appropriate financial advice through your superannuation fund is a step in the right direction.

“Many superannuation funds, including Professional Associations Super, offer general advice face-to-face or over the phone to encourage members to become more engaged with their super. Members can get valuable information about building their super balance, effective contribution strategies and review investment choice and insurance options,” she said.

“More complex personal advice can also be accessed depending on members’ needs. Every individual has different circumstances and their superannuation strategy can be maximised to reflect their age and life situation.”

Professional Associations Super has outlined five steps members can take to maximise their retirement savings at the end of this financial year:

1. Check whether you are eligible for the Government’s superannuation co-contribution. If you are a low or middle-income earner, the Government may match your personal contributions up to a maximum of $1,000 per annum.

2. Consider salary sacrificing any bonuses you are due to receive into your superannuation. This can potentially be tax effective while making a big difference to your balance when you retire. Just be mindful of the concessional contribution cap by speaking with your Fund.

3. Review your investment options regularly. The options you made in the past might not be suitable for your current situation and you need to understand where you are currently at. You should speak with your fund to help determine what’s best for you.

4. Review the insurance provided by your fund. Many superannuation funds provide Death and Total and Permanent Disability Insurance and you need to ensure it is sufficient for your needs – or that you are not paying for more than you need.

5. Ensure your fund has your Tax File Number, to avoid additional tax, and that your contact details are up to date. It’s also a good time to sign up for online access if available, so you get fast and easy access to your balance and other services.

Want to learn more?

Accountants Super is a division of Professional Associations Super. To learn more about Professional Associations Super click here.

Published: 9 May 2011