Did you know that more than 80 percent of superannuation investors have never changed their investment option away from the ‘default’1 (in order words, an option that is not necessarily customised for you and your specific circumstances)?
With statistics like this, you can only wonder if the wider Australian public really understands how complex superannuation is, and if they really understand how important it is to be engaged with your super. Remember superannuation is generally one of your biggest capital assets after all.
Aside from how you are invested, what are some of the other facets of superannuation and strategies to consider?
- Spouse contributions
- Downsizer contributions
- Cash out and Recontribution strategy
- Government co-contributions
- Division 293 tax on concessional contributions (high-income earners)
- Bring forward rule
- ‘Catch up’ concessional contributions
- Contribution Splitting
- Small business concessions
- Taxation within superannuation
- Access rules
- Annual contribution caps
- Super Death Benefit rules
- $1.6m Balance cap
- Social security assessment of superannuation
- Taxation of income stream
- Annual legislation change impacts
Tired of reading yet?
With so many complex areas in superannuation to understand throughout your lifetime and in varying events and circumstances, it is no wonder many of us find it easier to simply let it look after itself.
If you are unfamiliar with any of the concepts above, then it could be a good time to speak with our financial advisers to see if you can capitalise on superannuation.
Kelsey Dent (DipFP, ADFP, BA Hons [Bus,Mgt]) is a representative of Alman Partners Pty Ltd, Australian Financial Services Licence No: 222107.
Note: This material is provided for information only. No account has been taken of the objectives, financial situation or needs of any particular person or entity. Accordingly, to the extent that this material may constitute general financial product advice, investors should, before acting on the advice, consider the appropriateness of the advice, having regard to the investor’s objectives, financial situation and needs. This is not an offer or recommendation to buy or sell securities or other financial products, nor a solicitation for deposits or other business, whether directly or indirectly.