Melbourne, November 20: Superannuation (“Super”) is one of your most important assets in our lives and choosing the right options can make all the difference. – and the right Super will help you get the most out of it. It may be a little daunting for the ordinary mind when it comes to Super but if you make the effort and contact the right people, ask the right questions that suit your circumstances, it will go a long way in your and your children’s lives.
It is very important for you to:
1. choose a good fund (Super fund where you put your money into); and
2. make sure you do not pay an arm and a leg for fees.
3. There are insurance options available and one has to be circumspect to the cost or the premium one has to pay for those options.
In a seminar organized by the Australian Super (or AustralianSuper) some facts presented made AustralianSuper a very attractive choice, hard to resist if you are about to make a decision. According to the figures presented, there are 2.2 million Australians who have joined AustralianSuper and benefitting from it. On current figures, AustralianSuper is returning 11.8% as ‘Basic Investment Return’.
There is a multiplicity of options on how to invest, where to invest and how much to invest and there is always someone waiting to assist you as soon as you are ready.
Your funds are invested generally upon your approval – for not so short periods but there are EXIT options provided. The fees charged by AustralianSuper on various options of investment vary but are generally below 1%. The charge for account keeping is a meagre $78 for 12 months.
Just to compare fees one has to pay on $50,000 in super account shows you how attractive AustralianSuper is. Generally speaking, while a Master Trust fund may cost $870 (approx.) or an average Superfund may cost $700(approx.), Australian Super may cost as low as only $408 in annual terms.
Should you wish to bring your money to AustralianSuper, (from other funds), there will be EXIT fee(s) applicable. AustralianSuper’s exit option cost is almost negligible, may be as little as $35. One should consolidate and bring all the money into one Super account, which is always advisable to keep your costs low.
One should be aware of government’s co-contribution one is entitled to when saving for Super. For every $1000 or more you put into your Super, the government will chip in $500 for you. On top of that, should your spouse be able to put some money into your Super, the government offers tax offset benefits.
This is particularly directed towards small income households.
You can claim a tax offset of $540 if
- you contribute to the eligible super fund of your spouse, whether married or de-facto, and
- your spouse’s income is $37,000 or less.
This is in addition to the co-contribution government makes in relation to your spouse’s own contribution.
Salary sacrifice is another way of putting money in to your Super. If you are able to sacrifice a chunk of your salary and direct it to your Super, you may be paying a lot less tax. The ‘before tax’ amounts will be taxed only at 15%.
There are many permutations and combinations one has to do in order to choose and setup a Super fund. AustralianSuper offers, comparatively, the OPTION with the most attractive features – flexibility, low costs, low fees, maximum returns and personal support to its members.
For more information on AustralianSuper, go to their website www.australiansuper.com
This story has originated from a Seminar organized by AustralianSuper and is only for general information and not financial planning advice. Rates and figures used in this story may vary from case to case. Seek your own professional advice from a professional to suit your circumstances. Content of the story and views expressed are those of the author, not Australian Super.
-R. VenuGopal with inputs by DM