Category: General Advice and Information

Who is a Superannuation Financial Advisor? A superannuation financial advisor is a qualified professional who can provide personalized guidance on maximizing your superannuation benefits. They hold an Australian Financial Services Licence (AFSL) and have completed specific training in superannuation regulations and strategies. Why Consider a Superannuation Financial Advisor? There are several reasons why you might…

Employer Super Guarantee (SG) what is it? The SG is a percentage of your salary that your employer must contribute to your superannuation fund each year. This helps you accumulate a nest egg you can access when you retire. Currently, the SG rate is 11%, but it’s gradually increasing to reach 12% by July 1st,…

What is a Defined Contribution Super Fund? Unlike Defined Benefit funds where your retirement income is predetermined, a Defined Contribution fund operates differently. Here, the final benefit you receive at retirement directly depends on the total amount accumulated in your super account. This accumulation is influenced by three key factors: Understanding Your Account Balance Your…

How Defined Benefit Funds Work: Unlike Accumulation Funds, DB Funds don’t rely solely on your contributions or how well the market performs. Instead, a formula dictates your retirement benefit, typically considering: This approach offers a sense of security. You know, with a fair degree of certainty, what income to expect in retirement. The responsibility for…

A superannuation death benefit is a payment made from your superannuation account to your designated beneficiary or beneficiaries after your passing. It’s a crucial component of financial planning, ensuring your accumulated super savings provide support to those you depend on even after you’re gone. Who Receives the Benefit? The decision of who receives your super…

What is Superannuation Consolidation? Superannuation consolidation is the process of combining all your existing super accounts into a single account. This means no more juggling multiple logins, statements, and – most importantly – fees. By consolidating, you can: Before You Consolidate: Before diving into consolidation, here are some key things to consider: The Consolidation Process:…

Let’s delve deeper into what super contributions are and how they work. The Players Involved: Types of Super Contributions: Benefits of Super Contributions: Maximizing Your Super: Remember: Superannuation is a long-term investment. Starting early and making regular contributions, even small amounts, can significantly benefit your financial security in retirement. It’s wise to seek financial advice…

What are Concessional Contributions? Simply put, concessional contributions are payments made into your super fund from your pre-tax income. There are two main ways these contributions can happen: Why are They Tax-Effective? Concessional contributions are taxed at a lower rate (currently 15%) compared to your marginal tax rate. This means you get a tax deduction…

Superannuation, often shortened to “super,” is Australia’s mandatory retirement savings scheme. Throughout your working life, contributions are made to your super account, building a nest egg for your golden years. But how you access this money depends on the benefit type you choose. Here’s a breakdown of the two main options: 1. Lump Sum: A…

In Australia, superannuation, often called “super,” is a compulsory savings scheme designed to provide financial security in retirement. Throughout your working life, contributions are made to a super fund on your behalf, accumulating a nest egg you can access when you reach retirement age. But what exactly is a superannuation benefit, and how does it…