As the end of the financial year approaches, it’s essential to review your superannuation strategy. Linda Elkins, head of asset and wealth management at KPMG, advises those in the accumulation phase to consider increasing contributions. Utilize online tools provided by super funds to determine the optimal contribution amount for your retirement goals.
Lynda Cross, head of guidance at Aware Super, emphasizes the importance of assessing your tax situation to decide on the most beneficial contribution method. Consider salary sacrificing or making after-tax contributions based on your tax bracket and eligibility for government co-contributions. Be mindful of the $30,000 concessional contribution cap and take advantage of carry-forward rules.
Common mistakes to avoid at EOFY include not submitting a notice of intent to claim a deduction, exceeding contribution caps, and overlooking government incentives like the co-contribution and spouse contribution tax offset. Engage with experts, review beneficiaries, reassess investment strategies, and consolidate multiple super accounts to optimize your financial position for the upcoming year.
Elkins stresses the need for active engagement with superannuation to maximize opportunities and ensure financial security in the long term. While default settings like the superannuation guarantee and MySuper are beneficial, proactive management is crucial to make the most of your superannuation benefits.
Remember, the advice provided in this article is general, and readers should seek personalized financial advice tailored to their individual circumstances before making any investment decisions. Stay informed about saving, investing, and managing your money by subscribing to expert tips delivered weekly.
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