5 Cool Superannuation Strategies Including Co-contributions

Superannuation strategies are easy to implement but extremely important to take advantage of. Many people add to their super fund but never give it a second thought. They believe it does not need monitoring and can leave it invested wrongly for years upon years. Here are some great superannuation strategies to take advantage of today.

1. Consolidate your super

It’s much easier to keep track of your money if it’s in one account and, you’ll probably pay less fees.

2. Spouse contributions

In many cases one spouse accumulates the lion’s share of the super. Boosting your spouse’s super can reduce your family’s annual tax bill.

Co-contributions – let the government top you up. (Aussies only)

People who earn less than $31,920 a year can potentially receive a $1,000 helping hand from the government via a free ‘co-contribution’ into their super fund. If you earn $31,920 to $61,920 a year, you can still receive a super co-contribution but it will be adjusted depending on your income and how much you personally contribute. From 1 July 2007 self-employed people may also be eligible to receive a co-contribution.

4. Take a long term view

Super is generally a long-term investment (ie seven years or more). And since you can’t access your money until you retire, you might want to think about using a growth investment strategy.

5. Beware of the caps

There are caps on the amount of concessional (before tax) and non-concessional (after tax) contributions you can make each year. Please see Super terms explained for more information on concessional and non-concessional caps.

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