Superannuation (or super) exists to make the transition into retirement that little bit easier. You work hard for your money, so your super can be seen as a little thank you for your contributions to the economy and your career.
As your super is yours, it means you have the choice and opportunity to review it from time to time.
So, is it time to review your superannuation investments?
Read more from the Gold Coast Accountant team at Crest Accountants to find out.
What’s new with super in 2021?
There’s a set of superannuation changes set to be introduced in Australia in 2021. Some of them you may or not have heard about.
Let’s go through them now with your Gold Coast Accountant:
- More super from your employer
The Super Guarantee (SG) is set to increase from 9.5% to 10% on the 1st of July 2021.
However, the Federal Government has yet to commit to this increase, with Treasurer Josh Frydenberg stating a decision will be made in the May 2021 budget.
- Changing jobs? Your super will now follow you
Come the 1st of July 2021, workers will automatically keep their super fund when they change jobs. This is expected to stop the creation of multiple super accounts and increase super balances.
- Better transparency in investments
Super fund administrators will need to provide details about their investment decisions and how they are in the best interests of members.
- Increase to the contribution caps from July 1st
The concessional contribution cap is set to increase from $25,000 p.a. to $27,500 pa from 1 July 2021. The non-concessional cap in 2021–22 will see the standard cap increased from $100,000 to $110,000 from this date.
- New opportunities for ethical investment choices
- Naming and shaming poor performing super funds
Superannuation products will face an annual performance test, results of which will be published on a government website.
Ready to review your superannuation before the superannuation changes of 2021?
Talk to your Gold Coast Accountant at Crest today to see where you stand and what your retirement could look like.
When are the key times in life to review your super?
Your super is a long-term investment, that’s true. However, that doesn’t mean it should be set and forgotten, only to be looked at when you reach retirement. In fact, it’s quite the opposite!
There’s 4 times in your life where it’s recommended you review your super:
- Changing jobs (including moving from part time to full time, returning to work for mum’s and changes income and pay rises).
- Family structure changes (including children growing up and moving out).
- Purchasing property
- Financial windfall
Has any of the above recently happened in your life, or will be in the near future?
The next steps after making the move
Many Australians are in the process of switching super funds and exploring investment options. This is mainly down to desire to protect their nest egg from falling markets, preserving wealth and taking advantage of market volatility.
Already made the switch? Don’t forget these steps:
- Follow up on the transfer from old fund to new fund
- Give your employer your new fund details (and check contributions are being made)
- Complete your death benefit nomination form
- Check your insurance is in place.
Trust in your Gold Coast Accountant and Financial Planner
Now is the perfect time to review your superannuation investments.
Need help reviewing your superannuation investments?
Contact Crest today for specialised and personalised advice.
Disclaimer: The information contained in this news post is general in nature and is intended to provide a general summary only and should not be relied on as a substitute for professional advice.