What is superannuation planning and why is it important?
When you retire, you need to ensure that you have enough money to live comfortably from that day forward. The amount of money needs to retire in Australia differs from person to person, and couple to couple. The amount single Australians need to retire can range between $22,729 a year for a basic lifestyle, to $43,665 a year for a comfortable lifestyle. While an age pension is available to people when they reach a certain age, due to increased costs of living, this benefit cannot be completely relied on.
If you don’t want to struggle financially at the end of your life, start planning now. The best way to plan for your retirement is via superannuation planning. Superannuation planning is the process of managing your finances, and growing your wealth, to ensure you have enough money to last your retirement. Start by getting advice from a financial adviser as early on as you can.
What are the benefits of superannuation planning?
You can bolster your super in many ways, but please remember, it’s always best to consult a qualified financial adviser before making any investment decisions. With superannuation planning you can:
- Increase the amount or frequency of contributions to your superannuation fund
- Reduce tax by using your super as a vehicle to increase your savings
- Assess the benefits and limitations of accessing your super via lump sum, or income stream
- Reduce tax by making contributions to your spouse’s superannuation fund
- Salary sacrifice your personal income to increase your super and reduce tax
- Consolidate multiple superannuation accounts into one fund to increase your return
- Alter your superannuation plan so you can invest in alternate streams
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The sooner you start planning for your retirement, the better. Nowadays, Australians are living longer and maintaining active lifestyles until well into their 80s. This means that the money in your super needs to last longer and be managed more carefully. So, if you are worried about having enough to retire, then contact Guardian Group today. Our friendly financial advisers can help you create a superannuation plan that will set you up for a comfortable retirement.