What is superannuation?

Superannuation, often called super, is a way to save for your retirement. You build up super while you are working to make sure you can have a comfortable 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.

Your employer must pay 9.5% of your salary into a super fund. This is called the Super Guarantee and it’s the law. The Super Guarantee will gradually increase to 12% in coming years.

Why is superannuation important?

“Many of us will spend more than a quarter of our life retired, as people are now living until an average age of 86 years (if you’re male) and 89 years (if you’re female). Life expectancy is expected to rise to 91 for males and 93 for females by 2050.

 So, you might need a lot more money for your retirement than you think. Unless you’re counting on a lotto win or growing your own personal money tree, super can help you enjoy your retired days by allowing you to maintain a good standard of living, which isn’t achievable by receiving just the Age Pension.”

 Association of Superannuation Funds Australia (ASFA) [1]

How does superannuation work?

Superannuation is treated differently to most other savings. For most people, super will be taxed at a lower rate than a similar investment outside super. If you’re self-employed, you may be able to claim a tax deduction for personal contributions you make to super.

What your employer does

If you’re entitled to receive super, your employer must pay 9.5% of your salary into a super fund at least every 3 months. This is called the Super Guarantee and it’s the law. The Super Guarantee will gradually increase to 12% in coming years.

What your super fund does

Once your superannuation fund receives your contributions it invests this money either in a default strategy or one you have chosen yourself. Fees charged by the super funds may include general fees such as administration, member and investment, as well as optional extras including adviser fees and insurance premiums.

Your role

It is important you keep an eye on your superannuation payments and balance to ensure your money is working as hard as it can for your retirement.

If you are self-employed, you are responsible for making your own superannuation contributions.

How we can help?

 The team at Fox Wealth Advisory can help you understand, grow and manage your superannuation.

We can help you:

• Consolidate your super funds and help you save on fees
• Identify investment options tailored to your goals and risk profile
• Review your concessional and non-concessional contributions to super
• Identify strategies to help boost your superannuation
• Enjoy the benefits of salary sacrifice
• Understand your insurance options within superannuation
• Determine if you have the correct beneficiary nominations in place
• Determine whether a self-managed super fund (SMSF) is right for you.

How to find your lost super?

If you think you may have lost track of your super then you have access to services to help you find your lost accounts.

• ATO’s SuperSeeker service

This service searches the Lost Members Register and other ATO records, such as ATO-held super accounts and unclaimed super money, for your lost super accounts. You can also use the phone service (13 28 65).

• myGov

You can use the ATO’s myGov service to see details of all your super accounts, including any you have lost track of or forgotten about. You will need to create a myGov account and then link your account to the ATO service.

• Previous employers

Ask your previous employers for the names of the super funds that received contributions on your behalf.

Contact us for more information about how we can help you make the most of your superannuation.

[1] ^{http://www.superguru.com.au/retiring/how-much-super-will-I-need/}

An accident, sickness or death of a working age parent will almost always have a significant impact on the financial circumstances of the family. Despite this Rice Warner Actuaries calculate that over 95 per cent of families do not have adequate insurance[1].

Having the right insurances in place can help protect your family and your income if the unexpected occurs.

There are different types of cover that fall under the broad heading of life insurance[2]:

• Life cover– also known as term life insurance or death cover, pays a set amount of money when the insured person dies. The money will go to the people you nominate as beneficiaries on your policy.

• Total and permanent disability (TPD) cover– covers the costs of rehabilitation, debt repayments and the future cost of living if you are totally and permanently disabled. TPD cover is often bundled together with life cover.

• Trauma cover– provides cover if you are diagnosed with a specified illness or injury. These policies include the major illnesses or injuries that will make a significant impact on a person’s life, such as cancer or a stroke. It is also referred to as ‘critical illness’ cover or ‘recovery’ insurance.

• Income protection– replaces the income lost through your inability to work due to injury or sickness.

How we can help

Fox Wealth Advisory  has access to a large range of insurers and we can tailor your wealth protection plan to suit your circumstances. We will make the insurance process as simple as possible and help you get the right cover to protect you and those you love with a financial safety net in the event that the unexpected occurs.

Aren’t I already covered through my work and the government?

You may be eligible for some compensations and entitlements depending on your situation (for example Workcover, Sick leave, Social Security). However will these be enough? Will you qualify? And what are the waiting periods?

Please call one of our qualified advisers on 02 65459935 to discuss how we can help you protect you and your family financially.

^{[1] The Economic Cost of Underinsurance for a Typical Family, Volume 3, Issue 3 2010
[2] ASIC www.moneysmart.gov.au}