While it may not seem like it yet, your superannuation savings are likely to be your greatest asset, aside from the family home, when you near retirement. And even if retirement is some time away, it’s important to ensure that your savings in the superannuation environment are working for you – so that you have the money you need to support the lifestyle you currently enjoy when you’re ready to leave your working life behind you.
The government provides a range of incentives for Australians to save for their own retirement in the superannuation environment including the ability to make additional ‘concessional’ (or before-tax) contributions called ‘salary sacrifice,’ as well as government funded ‘co-contributions’ for low income earners.
For those with substantial (generally in excess of $250,000) in superannuation savings, a self-managed superannuation fund (or SMSF) may be an appropriate strategy. A SMSF offers a number of benefits in comparison to a ‘traditional’ retail or industry fund such as greater control and flexibility over investment decisions, the ability to invest in direct property and/or unlisted shares, artwork and other exotic or not-so-common investments. However SMSFs are not suitable for everyone, and require a degree of financial acumen, a knowledge of investment principles, and the time commitment required to devote to the preparation of paperwork and administration.
At Orbit Financial Services, we understand the complexities of taxation and superannuation and can help you to choose the superannuation structure and strategy that’s right for you. To find out more, please contact us.
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