Your superannuation is an extremely important investment because it is likely to be your main source of income in retirement. Also, it is the most tax-effective way to save for retirement so it pays to look after it.
A basic retirement versus a great retirement
Would you like to enjoy your retirement without worrying about money? Of course you would but unfortunately most people have a huge shortfall in their retirement savings. In 2015/16 the average Australian's superannuation balance at retirement was just $270,710 for men and $157,050 for women1 - not much considering a comfortable retirement can cost $44,011pa for a single person and $60,457pa for a couple2.
Your employer’s compulsory 9.5% superannuation guarantee contributions are unlikely to give you a comfortable retirement. But, if you start contributing more to your super now you can make more of your retirement later.
Super tax advantages
Superannuation is the most tax-effective way to save for your future. Your contributions are taxed at only 15% which is much lower than most peoples’ marginal tax rates.
How a financial planner can help you
A financial planner can help you:
- choose an appropriate super fund with the features you need
- select the appropriate investment mix depending on your risk profile and investment timeframe
- boost your super by making the most of the contributions limits, tax-benefits and government incentives
- transition your super to a pension once you retire.
For more information on super, view the ‘Getting to know your super’ video.
Getting the right advice
Superannuation is complicated and it’s important that you see a financial planner who can help you identify appropriate super strategies and take control of your investments. Visit the Bridges website to find out more about Bridges and the vast range of services available, or call Silvana on 8212 6166.
How we can help you
Bridges Financial Services Pty Ltd (Bridges) ABN 60 003 474 977, ASX participant, AFSL No 240837. This is general advice only and has been prepared without taking into account your particular objectives, financial situation and needs. Before making an investment decision based on this information, you should assess your own circumstances or consult a financial planner. Examples are illustrative only and are subject to the assumptions and qualifications disclosed. In referring members to Bridges, Credit Union SA does not accept liability or responsibility for any acts, omissions or advice provided by Bridges or its authorised representatives. Bridges is part of the IOOF group.
Credit Union SA refers its members and other people to Bridges and in return receives a commission of up to 22.5% of the fees and commissions they receive on investments, and a trailing commission of up to 0.20% per annum on funds held under management.