The superannuation arrangement is designed to ensure that you will have sufficient funds during retirement. The scheme is supported and endorsed by the government to ensure that all people can maintain independence after leaving active professional careers. It is important for you to take keen interest in your superannuation fund to mitigate the risk of outliving the accumulated money. You should review your account regularly and even seek professional assistance to promote future financial stability. Here are some simple tips to help you boost your superannuation account.
Consolidate Your Accounts
Most people have multiple superannuation funds which are unnecessary and expensive to keep. Moreover, there are accounts which are abandoned when people change jobs and careers. The total value of lost super funds as well as accounts held by the Australian Taxation Office is incredibly high. You should consider consolidating all your past and present funds into a single account to minimise the cumulative fees charged for the services. You can find your missing superannuation accounts and obtain assistance on merging the funds by consulting the ATO representatives.
Ideal Super Fund
There are different super funds in the financial market so it is important to maintain caution when choosing the perfect one. It is recommended to choose a product which caters to people within your professional field; the solutions will be more tailored to your situation and requirements. You can also choose a more general option which has members from a variety of industries and sectors. These types of funds are often favourable because they are larger and more stable.
An ideal super fund should have a good insurance cover and reasonable service fees to limit your potential financial risks. Also, you should note that each superannuation fund product has benefits and drawbacks so carry out a thorough comparison before making a decision.
You can boost your superannuation fund by contributing more money into the account. There are two options that allow you to make this extra payment. You can carry out a non-concessional contribution from your after-tax salary. Alternatively, you can choose salary sacrificing which allows you to pay more than the minimum percentage before the salary is taxed. You should discuss the latter option with your employer to ensure that they will allow the choice.
Know The Reforms
Finally, you should be attentive to government reforms concerning the superannuation system so that you can make adjustments. Changes to aspects such as tax, entitlements and compulsory contributions will affect your current finances and your superannuation.Share