The end of the financial year is a good time to review your finances and plan for the future.
The most common new year’s resolutions are around fitness, weight loss and diet, all worthy goals to improve our physical wellbeing. Similarly, the end of the financial year can be a good time to set goals related to financial wellbeing.
Here are five simple steps members can take to get their super working harder in the year ahead.
Look for lost super and consolidate funds
Members who have had multiple employers, or changed name or address, may have lost track of their super. You can check for lost super by using mygov or calling the ATO’s lost super search line on 13 28 65.
For those with multiple super accounts, consolidating funds may be worth considering. Moving all your super into one account can make it easier to manage and save on fees. However, there can be consequences in consolidating funds which should be considered before a decision is made. Further information can be found here: Consolidate your super | Active Super
Review if you’re on track
To find out if your super is on track to meet your retirement needs, it helps to have a clear idea of how much income you’re likely to need in retirement. One way to do this is to use our Retirement Lifestyle Calculator.
If you are unsure whether your super balance is on track to achieve the income you may need in retirement, you can also speak to one of our financial advisers.
Tax refunds
For those who receive an annual tax refund, it may be worth considering boosting your retirement nest egg by depositing any surplus funds into a super account. Extra contributions may not be suitable for all members and you should consider consulting a tax professional to see if it is the right decision for you.
New super rules
Super rules change frequently and it is important to understand what the reforms mean for you. For instance, on 1 July 2023, the Superannuation Guarantee rate will rise to 11 percent from 10.5 percent, which means you’ll have more funds going towards your super.
Another imminent change is the end of the 50 percent reduction in minimum drawdown rates for account-based pensions. The rates determine the minimum amount of a pension that a retiree must draw from their super each year. They were temporarily reduced, providing retirees more flexibility to manage their income and avoid selling assets. The rates will return to pre-2019 levels after 30 June 2023.
Seek advice
If you require advice on your retirement needs, please contact one of Active Super’s financial planners on 1300 547 873 or make an appointment to see how they can help.
Article source found here.