The government regularly reminds us that each Australian must take responsibility for funding their future. Regardless of when you will be able to access your super, or when you choose to stop working, you need to be aware of how your superannuation is being managed and if the final balance will be sufficient when you’re ready to retire (and for the years beyond).
Your super responsibilities
As a super fund member, it is your responsibility to manage your contributions (over and above your employer’s SG), regardless of whether they are being invested into a retail fund, corporate fund or your own self-managed super fund.
Superannuation is a tax structure but it should be treated as a valuable financial asset. The fundamental principles of financial planning prescribe that individual tailoring, based on your needs, objectives and personal circumstances, is paramount to ensuring you have enough money to enjoy your retirement years.
It’s a recipe for disaster to think that once you have established a superannuation account and your employer’s contributions are flowing in, you can forget about it for the rest of your working life. Financial markets will change, your own financial position will change, and your objectives and retirement plans may change, so it’s crucial that you review your super regularly.
Super needs are different
Additionally, it’s foolish to believe that a ‘one size fits all’ approach, with no personal advice on contribution levels or transfer issues, will help you achieve your goals.
The amount of money in your super fund when you retire will determine what type of retirement you will enjoy. So, it’s you, nobody else, who must take responsibility for determining what your needs are and work towards meeting them. That could mean making increased contributions after a certain age to bolster your savings or deciding who your beneficiaries will be if you don’t make it that far.
Did you know that you may attract tax penalties by making large contributions to superannuation or exceeding annual limits? Don’t panic; this is something your financial advisor can help you manage and still meet your accumulation strategy.
These are critical issues that you should take the time to discuss with us. Superannuation is your investment in your future … individual advice and tailoring are essential. Give us a call today!
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General Advice Disclaimer
This article contains general advice only, which has been prepared without taking into account the objectives, financial situation or needs of any person. You should, therefore, consider the appropriateness of the information in light of your own objectives, financial situation or needs and read all relevant Product Disclosure Statements before acting on the information. Whilst every care has been taken to ensure the accuracy of the material, Paradigm Strategic Planning or Sentry Advice Pty Ltd will not bear responsibility or liability for any action taken by any person, persons or organisation on the purported basis of information contained herein. Without limiting the generality of the foregoing, no person, persons or organisation should invest monies or take action on reliance of the material contained herein but instead should satisfy themselves independently of the appropriateness of such action.
Paradigm Strategic Planning Pty Ltd is an Authorised Representative of Sentry Advice Pty Ltd AFSL 227748