It’s been a difficult year in super…
so it’s more important than ever to make sure every cent counts!
 There’s no doubt your super’s had a tough time of it over the past 18 months or so. And it’s during times like these, when there seems no easy way for your super to get ahead, that every cent counts.
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Super continues to stack up as a great long-term investment
Despite all that’s happened on markets, over the long term super still remains one of the best and most tax-effective ways you can save for your retirement.
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Three easy things you can do to make every cent of your super count
1. Combine all your super in one fund, 2. Take advantage of all the ways you can tip money into your super, 3. Invest for growth.
1. Combine all your super in one fund ... and make sure it's a low fee one like AUSCOAL Super
If you've had more than one job, chances are you've got more than one super fund. This can make your money hard to manage and, make no mistake, more costly with multiple fees for multiple accounts.
Having your super paid into one fund generally makes good sense. What makes even more sense is having it in one award-winning, low fee, profit-to-members fund like AUSCOAL Super. But don't take our word for it. Use the free Chant West AppleCheck online comparison tool to see how we compare with other super funds.
What to do next ...
2. Take advantage of all the ways you can tip money into your super ... get lower prices and extra benefits as well
You might question why we'd suggest you contribute to super right now, but here are a few facts to consider:
- The government has just raised the age you can get the Age Pension to 67. This means you’ll need to save more super now if you want to retire earlier^. Read our Changes in the government's budget story for more details.
- They’ve also reduced the amount you can tax-effectively tip into super. Read our Changes in the government's budget story for more details.
- As strange as it sounds, investing now in super is much more attractive than it was 12 to 18 months ago. This is because the sharp fall on share markets means you would be investing at prices much lower now than they were a year or so back†. Think about it like you would if you were buying a house. Falling prices are good for buyers, and it’s the same thing for people investing in super.
Here's three ways you can tip more into your super and some of the extra benefits you can pick up along the way ...
Salary sacrificing
Pay less tax and grow your super at the same time! This is because these contributions come out of your before-tax pay. Instead of this money getting taxed at your marginal rate, which can be up to 46.5% if you’re paying the top rate of tax, it’s only taxed at 15% if you tip it into super. Remember that you usually cannot get hold of your money in super until you’ve retired.
The government co-contribution
If you make an after-tax contribution to your super, you might be eligible for an extra free government co-contribution. You need to check that you are eligible but for someone on a salary of $31,920 or less who pays $1,000 into their super, the government could pay in an extra $1,000. That’s a 100% return! You can earn up to $61,920 and still be eligible for something.
Spouse contributions
If your spouse earns less than $13,800, make a contribution to their super and you could get a tax offset of up to $540. That’s more easy money from the government for simply making a contribution to super! Your spouse can join AUSCOAL Super and we accept spouse contributions.
- Read how easy it is to become a spouse member of AUSCOAL Super
- Read more about the tax benefits of making spouse contributions
^ Subject to preservation rules.
† Past performance is not necessarily an indication of future performance.
3. Invest for growth
It might seem strange to say, but historically the best long-term returns have still come from growth assets like shares, even after the recent sharp falls.
And this long term focus on growth assets is not just for the young. Did you know ... up to 60%* of your savings are likely to be earned after you've stopped working and most people spend up to 25# years in retirement. That's a long term investment time frame in anyone's books.
So even if you've stopped work (or hoping to shortly), you've still got time to ride out the inevitable short term ups and downs of investment markets and get the long term benefits.
* Russell Research, May 2008
# Australian life tables, 2000-02
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Budget changes make getting the most out of your super more important than ever
Changes in the government’s recent budget mean it’s now more important than ever to make sure you’re doing all you can to maximise your super savings. There’s four things in particular from the budget that you should know about.
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Investment news … new manager lineup for our bonds asset class
There are now 11 managers (up from five) along with a greater mix of bond investment styles, approaches and sectors.
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Are you expecting a government co-contribution this year?
The Australian Taxation Office (ATO) has advised us that there could be a delay in the government making these contributions to your super due to problems with their systems.
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If you have any questions about this newsletter or your AUSCOAL Super account, you can contact us by email, phone, face-to-face or post. |
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Want to stay in touch with your super?
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Well, it’s time to sign up to our new Stay in Touch programme! ... register your email address and choose exactly what, how and when you hear from us. Easy!
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Member seminars in September and October
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Making the most of the ‘super’ recovery... find out when we’re visiting a location near you!
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