Three things today that will change your tomorrow
The way you invest in super today will really make a difference to how much you will have for tomorrow.
We care about your financial wellbeing, so we’re asking you to take a moment to review three things that could help you bridge the gap that COVID-19 may have left in your investments, insurance and superannuation.
- Choose the investment option that’s right for you
- Review your insurance cover to protect your future
- Boost your savings for retirement
You can watch our on-demand webinar for more information.
1. Choose the investment option that’s right for you
Super is a long-term investment, so you need to consider the investment option that’s right for your situation. We recommend you take some time to consider which investment option is best for you. It could close the gap created by any recent COVID-19 related losses.
To help you consider your investment options, we’ve created three profiles that match how long you have to invest and your risk tolerance with appropriate investment options.
- Starting out - You’ve recently started your working life.
- On your way - You’ve been on your super journey for a while now.
- Almost there - Retirement is less than five years away.
If you would like to read more about these investment options, click here.
Jamie, a member since 2012, shares the choices he made that could help his future.
2. Review your insurance cover to protect your future
Life’s not predictable, so you may wish to protect yourself and your ability to earn an income against possible sickness or injury. You could do this through insurance cover, such as income protection, death and total and permanent disability (TPD).
In the past, you may have received these insurances automatically when you joined Club Plus Super. However, recent changes by the government to protect members’ accounts from being eroded by fees means you may have to opt-in to maintain your insurance cover, therefore, now may be a good time to review your existing insurance.
To help you understand your insurance arrangements, click here.
Unable to work for four months, then two years – hear Karen’s insurance story. A Club Plus Super member since 1996.
3. Boost your savings for retirement
There are lots of ways you can boost your super. Here’s some tips on what you can do now to take advantage of the super tax breaks.
What you can do before 30 June 2020
- Check the contributions cap: Start by checking the pre-tax contribution caps for this financial year to see how much you could save in tax if you contribute to your super by 30 June. Concessional (or pre-tax) contributions are generally only taxed at 15% up to a cap. If you haven’t used all your super caps over recent years, you might be able to carry them forward to make a bigger contribution and save more tax. For more information about concessional contributions, click here.
- Claim a tax deduction for personal contributions: You may be eligible to claim a tax deduction for personal contributions. If you wish to claim a tax deduction, you must complete a Notice of intent to claim or vary a deduction for personal super contributions form and send it to us before the earlier of you lodging your income tax return for the year in which the contributions were made; and the end of the financial year the year after you make the contribution.
Other ways you can top up your super:
- Salary sacrifice (before tax) – Speak to your employer about whether you can have some of your pre-tax pay invested into your super so you’ll pay less tax on your income.
- Low-income super tax offset – If you earn income up to $37,000, you may receive a refund of contributions tax paid on your super contributions up to $500. You don’t need to do anything except ensure we have your Tax File Number and lodge your tax return, the ATO will generally make the payment into your super account.
- Transition to retirement (TTR) pension – If you’ve reached your preservation age but are still working, you can access part of your super through a TTR pension. A TTR may help you take advantage of tax breaks and allow you to contribute more to your super account whilst receiving the same net income.
Seek advice if unsure
While your super is designed to become one of your biggest assets by the time you retire, it’s important to consider your entire financial situation, too. A financial adviser can assess your individual needs, existing investments, commitments and goals to tailor a holistic financial plan.
Should you need financial advice, we can refer you to Club Plus Financial Planning to help you with your financial decisions.
Investments can go up and down. Past performance is not necessarily indicative of future performance.