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[MoreMore Insights] Tips for Managing Superannuation

For most people, meeting the cost of living in retirement is a challenge. Fortunately, people in Australia have superannuation accounts where employers pay a percentage of employee’s super along with the salary. If you want to make the most of your super and enjoy your retirement, don't miss out the following tips.



Consolidate Super Accounts


The cost and expense of running an Australian superannuation account can be high. You may end up with more than one super account if you have changed jobs a lot. By consolidating your super into one account, you may be able to reduce the annual fees you pay and will have more money to enjoy retirement time. One account means less paperwork and less burden on yourself by not having to manage multiple accounts, requiring less management fees and insurance premiums, and making it easier to keep track of your super.


Top up Your Spouse’s Super


If your spouse has less super and you have a high amount, then you can use the spousal super redistribution strategy to transfer to your spouse’s super account, and balance the accounts. This can increase your spouse’s super and also help to reduce your own taxable income.



Salary Sacrifice


You can reduce your taxes and increase your super by sacrificing your salary. Make an agreement with your employer to contribute a certain amount of your pre-tax salary or potential bonus to your super. This is because you pay tax on the ‘sacrificed’ amount at the concessional rate of 15 per cent (30 per cent for high income earners), instead of your marginal tax rate you might otherwise be on, and boost your super at the same time. At this reduced rate, you can contribute up to $27,500 per year to your account, including your employer’s 10.5% super guarantee payment. You can also choose to put your after-tax salary into the account. These are known as non-concessional contributions as you do not receive a tax deduction. Once your money is in super account, any investment income is taxed more favourably, your savings grow faster.



Self-Managed Super Fund (SMSF)


Self-managed super fund is a private super fund that you manage yourself. You manage your owner super, and choose the investments you like. This type of super fund is more flexible, as you can invest directly in shares or invesment properties. And you can also consolidate the whole family's super funds into one, instead of leaving in their own individual super fund accounts.

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