Superannuation, or simply ‘super’, is a system designed to set aside a percentage of your income into a super fund for your financial needs in retirement. This can be a combination of your voluntary contributions and your employer’s contributions, or superannuation guarantee (SG).
Here are some guidelines in getting to know your superannuation.
How does your superannuation build up?
Superannuation starts building up when an individual starts earning from work. The money that’s been deposited into your super fund can be invested on your behalf by a trustee.
These investments can be made into assets such as cash deposits, shares, or property, depending on your chosen option. As your investments generate returns, so is your balance.
Does your employer pay your super?
Check if the SG contributions from your employer are being paid correctly. For those over 18 years old who are earning $450 or more monthly, the amount should be at least 9.5% of ordinary earnings.
The amount being paid into your super account should also show in your payslips. The SG contributions are only paid quarterly, so those recorded on your pay slips will show up in your super fund in a few months. You can also check your super fund statements or login to your super account.
For concerns about your SG contributions, inform your employer, your super fund, or contact the Australian Tax Office (ATO).
Consolidate your super
Australians with superannuation may have more than one account. It would be easier to keep track of your balance by consolidating your super. It’s also better to pay just one set of fees and save money in insurance premiums if you have insurance cover on several super funds.
Make sure to ask whether you’ll risk losing other features and benefits that are attached to the account you’re closing. You may also be charged withdrawal or exit fees if you decide to consolidate.
Get familiar with your superannuation before your retirement. As soon as you do, you can grow your nest egg more effectively.
ASAG Reverse Mortgage as your retirement income booster
A reverse mortgage can be a tool as your income booster in retirement. It is a loan designed particularly for homeowners who are 60 and over. It enables retirees to access some of the assets they have gained in their home so they can move it towards their finances in retirement without having to sell their property.
We can guide you through all the information that you have to know about ASAG Reverse Mortgage, starting with details on how the loan works. If you’d like to discuss your reverse mortgage options, please contact us on 1300 002 724 or email@example.com, or request a product guide.
If you liked our “Get To Know Your Super” and find the information useful, check our blog space for more updates on equity releases and reverse mortgages.