Superannuation is the last thing we want to think about when we are young… outta sight outta mind, right? Wrong! Like most things in life, the earlier you get on top of it, the bigger benefit you will end up having in the long run. Think of it as one of those life admin tasks that’s short term pain for long term gain…. Here are five ways you can simplify your superannuation.
Check your statements
Most of us throw letters from our super funds into the drawer, or worse still the bin! Checking your statements every time is important because it will confirm that your employer is making their mandatory contributions to your fund on a monthly or quarterly basis. Remember this is your hard-earned money and will start to earn interest as soon as it hits your fund. If you don’t see regular contributions on your statement, be sure to contact your employer or the Australian Taxation Office immediately.
This is my number one tip for women, especially those who have changed jobs multiple times. If you have more than one super fund, you should roll them into one fund immediately. Pick the fund that has the highest balance and the lowest fees. Otherwise, you will be paying duplicate fees and insurance premiums, which can add up over time. If you are unaware of what super accounts you hold, you can find out by logging into your MyGov account. This will also help identify if you have any lost super that is currently being held by the Australian Taxation Office.
Commit to extra contributions
Super is generally the last thing on your mind when you are young and starting your career, however it is the perfect time to make extra contributions when you have spare cash. If you don’t have a mortgage or credit card debt, commit to making an extra lump sum contribution at the end of the year to reduce your tax and start building your super fund. This can be done through your employer or directly to your super fund.
Take advantage of tax deductions
Are you self-employed? It is crucial that you take charge of your super and make regular contributions into your fund. It is one issue that women in particular tend to ignore until they are older, so get ahead now! When you operate your own business, you may be eligible to receive a tax deduction for any contributions you make into your super fund, so setting aside the funds from your income during the year will save you money at tax time.
Keep a look out for new incentives
The Government is always looking for ways to help young people contribute more to their super, so keep an eye out for new incentives around the time when the Federal Budget is released.
As part of the 2017 Federal Budget, first home buyers will be able to contribute up to $30,000 into their super to go towards a deposit. The contribution will be taxed at only 15%, which is lower than the tax rate applied to your income. For more information, see the Federal Budget website here.
If you are keen to learn more ways to stay on top of your super, visit the Australian Taxation Office website here.
DO YOU HAVE ANY QUESTIONS YOU WANT TO ASK ABOUT SUPERANNUATION? LET US KNOW IN THE COMMENTS BELOW!
Amanda is on a mission to inspire professional women to be their happiest and healthiest self with practical tips to get organised and take control of their finances. An accountant in the busy corporate world, Amanda knows first-hand the challenges women face to prioritize their well being and she is passionate about changing this mindset.
Amanda proudly admits that she is a Lorna Jane addict, dog-lover and is dedicated to the Move Nourish Believe philosophy. She writes at Gorgeous Presence where she shares practical advice inspired from her very own health and wellness journey. You can connect with Amanda on Facebook, Instagram, Twitter and Pinterest.