An article from The Australian last week highlighted the impact on pre retiree’s super balances from the Government's last minute deal with Clive Palmer to repeal the Mining Tax. To get the bill passed, the government had to agree to further delay plans to gradually increase superannuation contributions from 9.5% to 12% over the next few years.
We are again disappointed with the ongoing changes to superannuation. In practice, this means a typical Australian corporate manager or qualified professional aged 45 and over, earning $150,000 plus and looking to make the transition to retirement in the next 10 years will end up with far less saved in super at retirement. The fact of the matter is however, that whether the superannuation contribution stays at 9.5% or rises to 12%, contributions alone over the course of an individual’s employment are not enough to build sufficient retirement savings to support a comfortable lifestyle.
While it is certainly a blow to anyone in this position, there are strategies available to fast track super and make up the shortfall. Salary sacrificing, maximising co-contributions, considering a self-managed super fund and optimising investment structures can all help you achieve the lifestyle you want when your days at the office are over. This news just means we all have to work a little bit harder to get there.
Book in for a FREE Financial Health Check with us today to determine how to make your super go further.
General advice disclaimer: This article has been prepared by FMD Financial and is intended to be a general overview of the subject matter. The information in this article is not intended to be comprehensive and should not be relied upon as such. In preparing this article we have not taken into account the individual objectives or circumstances of any person. Legal, financial and other professional advice should be sought prior to applying the information contained on this article to particular circumstances. FMD Financial, its officers and employees will not be liable for any loss or damage sustained by any person acting in reliance on the information contained on this article. FMD Group Pty Ltd ABN 99 103 115 591 trading as FMD Financial is a Corporate Authorised Representative of FMD Advisory Services Pty Ltd AFSL 232977. The FMD advisers are Authorised Representatives of FMD Advisory Services Pty Ltd AFSL 232977.