Boosting Women’s Superannuation Is Extremely Easy But It May Require Some Pillow Talk!!

It is a well known fact that women often accumulate less superannuation than men over their working life due to many reasons including lower salaries and working less hours due to family commitments.

Any future initiatives by Government to boost women’s superannuation will be applauded but there are a few simple things that couples can already do every year to boost the superannuation balance of their spouse.

Salary sacrifice to superannuation is a very powerful tool that can be used to boost superannuation and a couple can determine who is best placed to initially implement this strategy.  A change in Legislation last year introduced an opportunity for anyone who is eligible to contribute to superannuation to consider a deductible super contribution.  This might initially benefit the higher income earner in the relationship but wait: there’s more!

After making salary sacrifice or deductible superannuation contributions, Superannuation Legislation allows members to consider splitting concessional superannuation contributions with their spouse in the following financial year.  There are a few conditions and the maximum that can be split is 85% of the previous year’s concessional superannuation contributions up to the cap.

Concessional superannuation contributions are superannuation guarantee, salary sacrifice and deductible contributions.

If you or your spouse are concerned about your superannuation balance, have a think about whether it makes sense to contribute and split concessional superannuation contributions each year to boost and equalise superannuation balances.  Additionally, for low income earners, look into and consider other contribution options such as spouse contributions, and personal non contributions to potentially qualify for the Government co-contribution to boost your superannuation balance further.

In summary, if you are looking at your superannuation contribution options, think holistically and make sure you consider if there are ways for you to tax effectively increase your current contributions and don’t forget to see if you can reduce your superannuation fees.

Unfortunately, superannuation is far more complicated that it needs to be so you will need to consider if you need advice.  This is a really big decision so give it plenty of thought before you choose a financial adviser.

What should you do next?  As its your super for your retirement, a good place to start is for you to get involved and take an interest.

www.financialadviceshop.com.au

#womenssuper #womenssuperannuation #financialadvicecanberra #financialadvisercanberra #financialplannercanberra #financialadvicedickson #financialadviserdickson #financialplannerdickson

Disclaimer: Do not trust what you read on the web.  Always seek professional advice before making investment decisions.

 

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The new superannuation changes came into effect on 1 July 2017 and for members of Defined Benefit Superannuation schemes like CSS and PSS these changes are significant.

One area that has some complexity is the area of salary sacrifice. It is an area that many members of CSS and PSS ignore to their detriment but for those who are serious about improving their financial situation in retirement it is very important to thoroughly understand the new rules.

The cap for concessional contributions was reduced to $25,000 on 1 July 2017. At the same time a notional amount was included in the new concessional contribution cap for members of Defined Benefit Superannuation schemes like CSS and PSS.  Additionally, for members of the Defined Benefit Superannuation schemes like CSS and PSS, there is also Productivity component that needs to be factored into the concessional contribution cap calculation.

A final and important change to concessional contributions relates to the removal of a restriction that previously prohibited employees from making deductible superannuation contributions. This change in Legislation has created a new and simpler way for employees to tax effectively contribute to superannuation to boost their retirement savings through the making of deductible superannuation contributions.

At The Financial Advice Shop we enjoy assisting CSS and PSS members to ensure they are on track to maximise and optimise their total superannuation entitlements and we do this through a cost effective Financial Advice Health Check. As part of a Financial Advice Health Check we will discuss the importance of you optimising your superannuation contributions to improve your final retirement position in a range of scenarios.

If you take the time to visit The Financial Advice Shop home page it will not take you long to realise we are a superannuation expert in many areas. You will also be able to access links to our dedicated CSS and PSS web pages that offer a range of tips and traps that CSS members and PSS members might like to consider. If you have questions, we have the answers.

If you, or someone you know requires further assistance, please feel free to contact us and we will see how we can help.

www.financialadviceshop.com.au

#cssfinancialadvice #cssretirementplanning #cssredundancy #csstransferbalancecap #csssuperannuation #csssalarysacrifice #pssfinancialadvice #pssretirementplanning #pssredundancy #psstransferbalancecap #psssuperannuation #psssalarysacrifice

Use Lower Fees To Combat The Negative Effects Of The New $1.6m Transfer Balance Cap!

The new superannuation changes came into effect on 1 July 2017 and for wealthy superannuation investors and members of some Defined Benefit Superannuation schemes these changes are significant.

As the Australian Taxation Office starts to notify individuals that they have exceeded their Transfer Balance Cap, there is a steady trend developing. Breaches of the Transfer Balance Cap are a major issue for a range of retirees and members of defined benefit superannuation schemes like CSS and PSS.  It is also a major issue for senior long serving members of MSBS and DFRDB.

With all changes there are however opportunities. In the last five years the cost of superannuation investments have been falling but unfortunately superannuation members have not all been making changes to benefit from fee savings that are now available.

If you have exceeded your $1.6m Transfer Balance Cap then it is not all bad news. While a significant restructure of your investments may be required and you may end up paying some additional tax on earnings for the future, an excellent way to minimise the effects of the additional tax is to make sure you explore every opportunity to save fees on your superannuation investments.

Let’s consider a hypothetical example where an investor has superannuation investments of $2,000,000 and you could save 0.5% p.a. on fees ($10,000 p.a.). The fee savings in this example will likely more than compensate for an increased 15% tax on earnings for the $400,000 in excess of the $1.6m Transfer Balance cap.  A typical $400,000 portfolio earning 6% per annum could equate to around $3,600 p.a. in tax if taxed at 15%.

The latest superannuation changes are potentially really good news if you take the opportunity to seek a second opinion on your current superannuation arrangements and financial planning strategy.

With all of this complexity, isn’t it great to know that our business, The Financial Advice shop, has expertise available to help you make sense of all this and can provide assistance where required. If you feel you might benefit from a Financial Advice Health Check, a review of your Transfer Balance Cap situation or a second opinion on your current superannuation and financial planning strategy as a result of the latest superannuation changes, contact us without delay.

In a complex world, there has never been a better time to contact us to see how your financial situation could be improved.

http://www.financialadviceshop.com.au/financial-advice-second-opinion.html

 

The Latest Superannuation Cap Changes Are Terrible News For Defined Benefit Pensioners!!

The new rules for superannuation and pension Transfer Balance Caps will reshape the way some Defined Benefit Pensioners approach their personal superannuation contributions and overall superannuation entitlements. Some will even have the right to make personal contributions to superannuation taken away from them forever!

The Government has chosen to use a very large multiple to apply to Defined Benefit Pensions when determining the amount recorded against the Transfer Balance Cap. Some consider the multiple used is extravagant and when other pension and superannuation accounts are included it is quite easy for Defined Benefit Pensioners to reach and breach the $1.6m Transfer Balance Cap.  Some senior executives will breach the $1.6m Transfer Balance Cap with only their Defined Benefit Pension and tax penalties will apply.

More than ever before, current and former Defined Benefit Pension recipients (such as CSS, PSS, DFRDB, MSBS and many others) need to look carefully at their situation when it comes to contributions, superannuation accounts and entitlements but they should not leave it until the last minute if they are likely to be affected. The new rules take effect on 1 July 2017 and penalties can apply for breaches but fortunately there are strategies to be considered to improve the situation.

The Government and Australian Taxation Office are expecting affected Defined Benefit Pensioners to take all necessary actions with all of their superannuation entitlements before 1 July 2017 to avoid financial penalties.

If you are a current or former member of the CSS, PSS, DFRDB or MSBS who is not sure what the latest superannuation Transfer Balance Cap changes might mean to you and all of your superannuation entitlements, you should consider contacting us. New client places are strictly limited but to get things started, we can offer a very cost effective Financial Advice Health Check discussion to ensure you can potentially access our experience to understand all of your future superannuation investment strategy options.

HOT TIP: The need for honest, transparent and practical financial planning advice has never been greater, so contact The Financial Advice Shop without delay to see how we can help you.  We enjoy working with people who want to be successful and will do all we can to make your success a reality.

We have never had anyone say that our Financial Advice Health Check wasn’t value for money and we won’t deal with anyone where we can’t add value! If you are referred by someone we know, you will even get a discount!

www.financialadviceshop.com.au

#CSSTransferBalanceCap #PSSTransferBalanceCap #DFRDBTransferBalanceCap #TransferBalanceCap #excesstransferbalance

The Effects Of The New Superannuation Rules Are Complex And Should Not Be Underestimated!!

On 23 November, the Australian Parliament passed the Super measures announced in the 2016 Federal Budget.

There are a number of significant changes being made to superannuation and a summary of some of the major changes is available via the following link:

http://nebula.wsimg.com/59c0a5c4ac67ea27de95cd90d4c2e40e?AccessKeyId=255E926C354D54DF0D43&disposition=0&alloworigin=1

The effects of the new superannuation rules are complex and should not be underestimated, but fortunately there are things you can do to minimise the effects. It is important that you take the time to understand the new rules and immediately make appropriate changes where required. It could be that urgent action is required before 30 June 2017 to ensure you are not disadvantaged.

If you are starting to think about your superannuation and retirement, or know you should be planning for your retirement, it is time to start taking action with a trusted financial planning advice discussion to “see what’s possible”. Perhaps you also know someone else who should be talking to us?

HOT TIP: The need for honest, transparent and practical financial planning advice has never been greater, so contact The Financial Advice Shop  without delay. To get things started, we offer a very cost effective Financial Advice Health Check discussion to ensure you can access our experience to understand all of your fees and future superannuation investment strategy options.

We have never had anyone say that our Financial Advice Health Check wasn’t value for money! If you are referred by someone we know, you will even get a discount!

http://www.financialadviceshop.com.au

#1.6mcap #1.6milliondollarcap #superannuationcaps #superannuationchanges #retirementplanningcanberra

The May 2016 Federal Budget Will End Superannuation As We Know It

On 3 May 2016 the Australian Treasurer, Scott Morrison, handed down his first Budget and changes to superannuation were a core theme.

While there is plenty of focus on things that are perceived as negative changes, let’s not forget there are also some important changes that are potentially quite good news.

It is important to note that the Budget measures will not become Law unless Legislation to support the measures is passed in Parliament. Until that time, the Budget measures are simply a proposal.

A detailed summary of the 2016 Federal Budget has been prepared by The Financial Planning Association of Australia and is available via the following link:

2016 Federal Budget Summary

HOT TIP: In relation to superannuation reforms, most of the 2016 Federal Budget measures are planned for a 1 July 2017 commencement so there is plenty of time to plan.

www.financialadviceshop.com.au

#superannuation #May2016federalbudget #superannuationadvice #retirement #womenssuper #retirementplanning #financialadvice #retirementadvice #earlyretirement

Are Australians Intending To Retire Later Because They Can’t Afford An Early Retirement?

It has been suggested in a recent Australian Bureau of Statistics survey that the proportion of Australians intending to retire later is increasing.

Some of the key survey findings include:

  1. 71% of people surveyed intend to retire at age 65 (up from 45% in 2005)
  2. 23% of over 45’s surveyed intend to retire at age 70 or over (up from 8% in 2005)
  3. 13% of women expect to rely on a partner’s income in retirement compared to only 3% of men

Do these findings suggest that everyone simply loves their job? Not necessarily, as the survey reveals that the major reason for working longer was ‘financial security’. This suggests to me that many people might retire earlier if they had the financial resources to do so.

The survey also revealed that for the majority (53%), superannuation was expected to provide the main source of their income in retirement.

Fortunately, when it comes to superannuation there are currently many things that can be done to improve long term financial security and the sooner actions are taken, the greater the opportunity for success.

HOT TIP: A successful retirement doesn’t just happen: you need to make it happen!

What should you do next? It’s really simple: if you are over 45 and serious about planning for a secure financial future, we are serious about assisting you to be successful.  Contact us today to see how we can help you understand things more clearly.

www.financialadviceshop.com.au

#superannuation #superannuationfees #superannuationadvice #retirement #womenssuper #retirementplanning #financialadvice #retirementadvice #earlyretirement