X

SUPERANNUATION

Planning to live well in retirement.
One of the fundamental goals of financial planning is to ensure you have sufficient funds to cover your needs in retirement. At present, most Australians are only saving and investing for their post working-life years through the compulsory superannuation (super) contributions being made by their employer.

An ageing population with an increased life expectancy, coupled with ongoing pressure on governments to reduce social security spending, are making it increasingly likely that without additional savings – or more substantial super contributions – many people will not have sufficient funds to see them through their retirement years.

Markson has extensive experience in developing personalised superannuation strategies for our clients based on their life stage, current assets and income, which allow them to look forward to living well in retirement.

How super works

Compulsory superannuation was introduced in Australia in 1992 as a national retirement savings scheme. Under current rules, if you are aged between 18 and 70 years and are earning more than $450 per month, your employer is generally required to contribute at least 9.5 per cent of your salary to your preferred super fund on your behalf (this is known as the superannuation guarantee or SG). This applies whether you are full-time, part-time or employed on a casual basis.

Your super fund invests in assets such as property, shares, fixed interest and cash. We can guide and advise you on which assets are most suited to your circumstances and objectives, and then help you manage your fund so that your existing benefits and future contributions are looked after and given the best opportunity to grow.

As superannuation is generally a long-term investment, your contributions have a long time to benefit from the growth of your investments.

Other considerations

Fees

To pay for the cost of managing your super, you can choose to either have the fees deducted from your account or you can pay them directly. We let our clients dictate how fees are charged.

Taxes

As super is an investment, the Commonwealth Government charges tax on earnings, however this is at a concessional rate of 15%.

Insurance premiums

Many super funds offer the option of including insurance coverage for death, total and permanent disablement, and income protection. If you elect to have such cover bundled with your super, the premiums for that insurance are deducted from your account.

Preservation age

To ensure that super is used in retirement and not beforehand, there are restrictions on when you can access your super benefits. The age at which you can do so (called the ‘preservation age’), is determined by the year you were born. If your preservation age is less than 65, you must have permanently retired from the workforce before you can gain access to your superannuation benefits.
How well do you want to live in retirement? To build the wealth you’ll need tomorrow, talk to us today. Call (02) 8007 6244.
Book a consultation