Super changes could boost your future savings.
When it comes to retirement you’re going to want to have enough income to afford the lifestyle that you’ve always dreamed of, right?
Your retirement income will be made up of the age pension (paid to you by the government), any personal savings and investments that you may build up over the years and your super.
Let’s talk super. It’s on the increase, with the current annual super guarantee payments from your employer now sitting at 9.5%, it's scheduled to rise to 10% on 1st July 2021. Then it will continue to climb by 0.5% each year until it reaches 12% on 1st July 2025. But what does this mean for you? It means you have the ability to significantly increase your future savings. With experts estimating that the cost of being in an underperforming super fund can be up to $500,000 , it's super important to make sure your fund is performing and working towards your goals.
With the proposed changes from the federal government’s Productivity Commission Inquiry Report, a fund would have up to 12 months to improve its performance if investment options did not meet their stated benchmark, which means you can move your super and be at less risk of getting caught up with underperforming funds.
Other changes with superannuation include; insurance should be opt-in, rather than default for members under 25 years of age, a new retirement income framework and the increase in the number of trustees allowed in a self-managed super fund from four to six.
It’s time to think about your super and make sure that it’s working towards your retirement goals. If you need super advice, talk to your financial adviser.
Disclaimer 2019: This document has been created by Wealth Market Pty Ltd (ABN 56 128 350 112, AFSL No. 482898). It provides an overview or summary only and it should not be considered a comprehensive statement on any matter. This information has been prepared without taking account of your personal objectives, financial situation or needs. Because of this, you should, before acting on this information, consider its appropriateness, having regard to your specific objectives, financial situation and needs.