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.

#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.


Don’t Be An April Fool: There’s Only Three Months Until The End Of Financial Year And You Have Plenty Of Things To Think About!

So what are some of the things you might need to think about before the end of the financial year?

April is a great month to review your salary sacrifice contributions and make sure you are on track to maximise the opportunity in the current financial year. If you have not made any salary sacrifice contributions in the current financial year, you still have time to make a solid start.  If you have been salary sacrificing and could do more, now might be a good time to think about ramping it up.

When it comes to tax effective superannuation contributions, there are a number of very simple strategies involving a drawdown from other assets to help you tax effectively contribute more than you might otherwise be considering.

April is also a great month to be thinking about splitting superannuation with your partner. Reasons to split super can vary but common reasons include equalising super balances or an age difference that means one of you is much closer to retirement.  You have until the end of June this year to split 85% of last financial year’s concessional superannuation contributions.

There are also personal contributions for the Government co-contribution and spouse contributions for the spouse rebate that might be worthy of further consideration depending on your circumstances and eligibility.

If you have sold an investment property or another asset and have triggered a capital gain, don’t forget you may be able to use superannuation contributions to assist with managing any capitals gains tax liability. You still have plenty of time to seek advice and think, plan and act.

There might also be things to prepay or purchase to bring forward a tax deduction in the current financial year. Make sure you start the conversation with your tax adviser before it is too late.

If you are self employed, don’t leave it to the last minute to plan and make your superannuation contributions. If you are planning a superannuation contribution, make sure it is received in your superannuation account well before the end of June.  We’ve seen it far too often where a contribution is delayed by an electronic transfer and the contribution ends up counting towards next year’s contribution limit and that can really stuff things up.

If you are thinking about superannuation contributions, don’t forget to review your superannuation fund fees. Believe it or not, there are options available that are more cost effective than the industry funds but few advisers will present them to you.

Finally, the 2016 Budget will be handed down on 10 May and it is difficult to predict how it might affect future investment decisions. There is a case for superannuation investors to bring forward their investment decisions in the hope that they can lock in some existing entitlements.  Time will tell if this approach has merit.

HOT TIP: Don’t turn into an April fool because you are time poor, lazy or disorganised.  As a minimum, take a moment to get some sound advice and plan your course of action for the three remaining months in the current financial year!

#superannuationadvice #superannuationcontributions #financialadvice