Superannuation, or ‘super’ to most people, is a tax-effective way of saving money for your retirement. This money is held in a ‘fund’ and invested on your behalf for when you retire. The superannuation system in Australia is highly regulated to protect those savings. If you are employed and earn over $450 per month then your employer is required to pay money each quarter into your nominated super fund. You can choose to make additional payments if you wish.
Based on Camori Investments’ experience within the superannuation and investment industries, we have outlined a number of things for you to be aware of.
If your super fund doesn’t have your TFN then your employer’s super contributions or concessional contributions are taxed at 49% instead of the standard 15%. You are unable to make after tax contributions to your fund if they don’t have your TFN.
Many super accounts are lost because we move house, change our name or change jobs and don’t notify our super fund. If you don’t claim your super within 12 months, this ‘lost super’ will be held by the ATO until it’s claimed.
Every single super fund account is charged both investment and administration fees. Administration fees are generally a flat fee per account. This means if you have two, three or four accounts you could be paying double, triple or more than you need in fees.
Your super fund might also be deducting a life insurance premium from every single account. You could be paying more than you need.
According to the Australian Prudential Regulation Authority (APRA), on average, each working Australian has nearly three superannuation accounts. Imagine how much you could be saving in fees if all your super was combined into one account.
Let Camori Investments find your superannuation and combine your lost superannuation.
If you are earning at least $450 per month then in most cases your employer must make contributions to your superannuation fund on your behalf. The amount is currently set at 9.5% of what you earn. Depending on your agreement with your employer, your salary could be including super or plus super. At a minimum, your employer must pay your superannuation into your selected super fund every quarter.
The default superannuation fund provided by your employer must provide a minimum level insurance. The insurance premium will vary based on your individual circumstances such as age, gender, occupation and health. These premiums are automatically deducted from your super account balance and can be cheaper as the fund purchase policies in bulk. The insurance provided is more of a general cover and may not be sufficient for your individual situation. It’s always best to discuss your individual insurances needs with a Camori Investments insurance specialist.
When you think about retirement, how much money do you need? Having a retirement plan in place can allow you to work out a specific savings plan based how many years until you retire and your average life expectancy. Planning up front puts your worries at ease when thinking of your golden retirement years.