Superannuation Fund

Competent, professional financial planning has just become more important for our Perth clients and across Australia. The recent decision by the Government to freeze employers’ contributions to superannuation funds until 2021 is going to cost the average worker a lot of money. Most of all, though, it is going to reduce the “margin for error” that Australians had for managing their super investments.

The current compulsory contribution by employers is 9.5%. It was scheduled to rise to 12% in 2019-20 via yearly increases. Now, it is scheduled to stay at 9.5% until 2021, when it will be raised 0.5% to 10%. Then, it will continue to rise 0.5% each year until it finally reaches 12% in 2025.*

According to John Brogden, chief of Financial Services Council, the freeze will cost Australians $128 billion in superannuation contributions. In other words, Australians will have $128 billion less to retire on than they would have without the freeze.

What it Means to You

First of all, we can’t give advice on a blog because everyone’s situation is different. Consequently, what we are going to say will be general in nature and can’t be interpreted as individual advice.

Our financial planners would like to address some of the questions they have been asked about superannuation funds in our Perth office. One of the more common questions we get is “What can I do to boost my super?” While we can’t give specific financial advice on a blog, we can provide a few tips and techniques that may help you boost your super.

Have You Set a Retirement Date?

Basic financial planning starts with setting a retirement date. It can be evolved, recalibrated or changed at any time, but a retirement date is essential for helping you focus on growing your super. The age at which you plan to retire will play a role in what strategies you will use.

Formulate a Plan

If a person formulates a plan, they are more likely to get to where they want to go than if they don’t. Like the retirement date, it’s a matter of focus. It can also get you to thinking about what you actually have to do to retire comfortably.