Your superannuation will help you unlock your retirement plans and dreams. At Invest Blue we’re here to help you understand it, know it, grow it and manage it, so when it comes time to access it, your retirement can be as rich as you want it to be.
How We Can Help You
We will help you:
- find any Lost Super you might have
- consolidate your super funds and help you save on fees
- identify investment options tailored to your risk profile and needs
- review your contributions to super
- enjoy the benefits of salary sacrifice and other super strategies
- understand your insurance options within superannuation
- determine if you have the correct beneficiary nominations for your super assets
- maximise your super for retirement
- determine whether a self-managed super fund is right for you
- identify the benefits for you and your employees of different corporate super funds
What Is Super?
Superannuation (or super) is a fund specifically designed to help you save and invest for your retirement.
Super is a tax effective environment for your money; the account is held in your name, and both you and your employer can deposit money into your account. Your money will attract investment earnings, and when you reach your ‘preservation age’, you are able to start drawing on these funds.
When you reach preservation age, you can access your super as long as you are permanently retired (or have reached age 65). If you haven’t permanently retired, you can still access part of your super via a transition to retirement pension. A transition to retirement strategy means you can still work full time or part time after your preservation age and still contribute to your super.
Super is one of the most tax-effective ways to invest in your future, because of the many tax benefits. Investment earnings are taxed at a concessional rate within super, compared to investment earnings outside of super. To add further benefit, if commencing an income stream, your super benefits are generally received tax free from age 60.
What Is Superannuation
This 3 minute video produced by AMP explains what super is and how it can help you save for your retirement.
How Much Is Enough?
How much super could you have and how long could it last? Use this calculator to see how you are tracking against your lifestyle objectives once you stop work.
Superannuation will help you save for that time when you no longer work or you work less – a time we all commonly refer to as retirement. However, you need understand it, know it, grow it and manage it to ensure you have enough to live that retirement you dream of.
Our population is ageing rapidly and the aged pension will not be enough to live a comfortable retirement. Over 40 years SG contributions made by your employer will provide you with just over half of your pre-retirement income*. Will this be enough? Not according to AMP who believe you need 65% of your pre-retirement income to retire comfortably.
We all have different needs and different ideas of what our ideal retirement looks like. Invest Blue will help you identify “how much is enough” for you and put strategies in place to help you achieve your retirement plans and dreams.
How Much Super Is Enough?
This video, produced by AMP gives you a good rule of thumb for using when working out how much you will need in retirement (2:35).
Types Of Super Funds**
Retail funds
Retail funds are established and operated by financial institutions, insurance companies and other investment managers and are available through fund managers, financial planners and banks. Retail funds are available to anyone and often have a large number of investment options.
Self managed super funds (SMSF)***
These are also known as do-it-yourself (DIY) funds. As the name infers, these are funds you set up and run yourself, which gives you greater control and the ability to be your own investment manager. It is generally accepted that a combined member balance of around $220,000 is necessary before a SMSF becomes cost effective.***
There are a number of benefits of SMSF including control, investment choice, taxation and estate planning. Along with the benefits there are a number of key areas that need to be carefully considered including that the responsibility associated with managing the fund lies with you the trustee; only four members can be in one fund and half the members of the fund must reside in Australia.
Invest Blue offer’s their own SMSF administration service to make creating and managing your own SMSF simpler. Ask us about SMSF Complete.
Corporate funds
A corporate fund is arranged by an employer, for its employees. The benefits of having the right employee superannuation plan in place may include:
- Reduced administration, paperwork and turnaround times with your Financial Planner being the interface between the organisation, employees and the corporate super fund.
- Potential access to a more flexible and competitive fee structure.
- Financial education for staff.
- The assignment of a Financial Planner for personalised financial and wealth creation advice tailored to each employee’s own situation (fees may apply).
- Potential access to exclusive discounts on a range of financial services including general insurance, health insurance and home loans.
- Insurance for staff that may not be able to get insurance elsewhere due to health issues (auto acceptance rules apply).
Industry funds
Industry funds are generally established by industry groups or unions to provide low-cost superannuation benefits to workers in particular industries. Industry funds usually have 5-15 investment options. The majority of industry funds are run on a not-for-profit basis.
Retirement savings accounts (RSAs)
Retirement savings accounts were introduced as a way to make saving for retirement simple. They are available through banks, credit unions and other financial institutions, and were initially offered with passbooks.
They tend to focus on very conservative investments such as fixed term investments and cash where returns are low and the capital is guaranteed. In return, they tend to charge a low flat fee, or none at all, and offer no investment choice or insurance.
Defined benefit funds
These are usually only available to long-term public sector employees and corporate fund members.
Defined benefit funds offer either a lump sum based on a multiple of your final average salary (eg five times your final average salary) or an ongoing pension of around 75% of your final salary until you die. They are usually considered quite generous.
What you need to know
This information is provided by Invest Blue Pty Ltd (ABN 91 100 874 744). The information contained in this article is of general nature only and does not take into account the objectives, financial situation or needs of any particular person. Therefore, before making any decision, you should consider the appropriateness of the advice with regards to those matters and seek personal financial, tax and/or legal advice prior to acting on this information. Read our Financial Services Guide for information about our services, including the fees and other benefits that AMP companies and their representatives may receive in relations to products and services provided to you.
