06 Nov Superannuation… it’s not a case of “set and forget”
Whether you are an employer who has set up a corporate superannuation fund for your employees, or an employee building your retirement nest egg through Superannuation Guarantee (SG) contributions into a corporate fund, you need to remain aware of how your superannuation balance is growing to meet your future needs.
As a super fund member it is your responsibility to manage your contributions (over and above the SG), regardless of whether they are being invested into a retail fund, corporate fund or your own self-managed super fund.
Super is simply another investment vehicle and as with any type of financial asset, the fundamental principles of financial planning prescribe that individual tailoring, based on your needs, objectives and personal circumstances, is paramount to ensuring you have enough money to enjoy your retirement years.
It’s a recipe for disaster to think that once you have established a superannuation account and your employer’s contributions are flowing in, you can forget about it for the rest of your working life. Financial markets will change, your own financial position will change, and your objectives and retirement plans may change, so it’s important you regularly review your super.
Super needs are different
Additionally, it’s very foolish to believe that a “one size fits all” approach with no personal advice on contribution levels or transfer issues will help you achieve your goals.
Although employers are responsible for the education of corporate super fund members, you, the member, must take responsibility for determining what your needs are and working towards meeting them. That could mean making increased contributions after a certain age to bolster your retirement savings or deciding who your beneficiaries will be if you don’t make it through to retirement.
Did you know that you may attract tax penalties by making substantial contributions to superannuation? Don’t panic; as long as your strategy enables you to fully utilise funds accumulated to meet your needs, the added tax may not hinder your accumulation strategy. But how will you know this unless you speak to an experienced adviser?
These are critical issues that you should take the time to discuss with us. Superannuation is your investment in your future… individual advice and tailoring is essential.