Super Young Family 2

As your family grows, it’s important to consider the impact on your superannuation. Taking a career break, growing your assets and funding school will all affect your savings. Talk to a financial adviser about strategies to grow your super, protect your assets and ensure your family is looked after, today and into the future. 

FIRST, SOME IMPORTANT QUESTIONS

Does my superannuation offer insurances which cover me for death or injury?

You may be able to take out Death, Total Permanent Disability insurance and income protection as part of your superannuation. This lump sum payment may be used to pay off debts, medical expenses and provide an income for your family if you were no longer able to work.

What is a Binding Death Benefit Nomination?

A Binding Death Benefit Nomination (BDBN) enables you to nominate who your superannuation assets will be paid out to, should you die. Without this, your super funds may not be distributed according to your wishes. A BDBN is an essential part of your Estate Plan. However it is only valid for a period of three years and therefore needs to be updated to ensure it remains current. 

Do I need a Will or an Estate Plan?

Whilst a Will covers many parts of your estate, it does not include all of it. To ensure your superannuation goes to your preferred beneficiaries, you should consider a Binding Death Benefit Nomination as part of your Estate Plan. Estate Plans also include your Will, your choice of guardians for your children and who you choose to be your Powers of Attorney. 

five ways to increase your super

  • Number1

    Make an after-tax contribution


    If you are a low or middle-income earner and make an after-tax contribution to your super the government will also make a contribution. How much they contribute depends on several factors but it may be as much as $500 p.a. Over the course of your career, this can mean tens of thousands of extra dollars in your pocket when you retire. 

  • Number2

    Make a before-tax contribution


    If you are a middle to high-income earner, then making a contribution to your super from your before-tax pay may make a significant difference to the net amount of tax you need to pay. Any contributions you salary-sacrifice are taxed at 15% and are not treated as assessable income for taxation purposes. This means the amount salary sacrificed is not subject to your marginal tax rate.

    However, amounts salary sacrificed into super also contribute to an individual’s concessional contributions cap.  If the concessional contributions cap is breached, the excess contributions over the cap are subject to penalty tax. It is therefore important to speak with a financial adviser to ensure that this strategy is appropriate for you.


  • Number3

    Consolidate your accounts


    Do you know how many super accounts you have? On average, Australians change jobs around 10 times during their career. This can mean a new super fund with each new job. Whilst there may be only small amounts in these funds, it may be worth finding them and consolidating them into one account. Over the span of your working life, the interest on these extra amounts may make a big difference. Talk to your financial adviser to find out if this will work for you.



  • Number4

    Review your investment mix


    We’ve all been through times in our life where we were willing to take a few more risks than at others. It’s the same with our superannuation. There are times we may be interested in taking higher risk investments for bigger returns or times we prefer lower risk investments for long-term security. Talk to your adviser to find out which investment mix best suits you.



  • Number5

    Make a small contribution


    When talking about a long-term investment like super, every little bit helps. Even if you can only manage a few small contributions, it will all add up. For example, if you are 35 with a super balance of $50,000, you could boost your super savings at retirement by $42,700 by making a weekly $20 contribution. That’s the same as buying a cup of coffee each work day.

    Source: Equity Trustees Super Calculator. Key assumptions: Starting age of 35, retirement at 65, starting income of $50,000, starting super of $50,000, investment returns of 5% per annum. Fees have not been taken into consideration with this calculation.