Retirement planning can seem a tad daunting, especially when you're navigating it as a team. Whether you're close to retirement or juggling the thrills of being a business owner, getting your superannuation ducks in a row is crucial. Let's explore how couples can smartly manage their super for a future that's not just comfortable but downright cozy.
Superannuation, or 'super', is that nest egg we all count on for retirement. It's more than just a savings account; it's your ticket to a worry-free retirement. The earlier you get your super sorted, the more you'll thank yourself—thanks to the magic of compound interest.
Tackling super as a duo means looking at the big picture together. It's time to pull up those account statements and have a heart-to-heart about where you both stand. Are your retirement goals aligned? Do you dream of caravan adventures across the Outback, or is a beachside retreat more your style? Understanding each other's vision is step one.
If one of you is earning more, consider sacrificing your salary. It's a way to funnel more into your super before tax is removed, reducing your taxable income and boosting your retirement savings. Just watch those contribution caps!
Have you ever thought of helping your better half's super grow? Spousal contributions can be a win-win, with potential tax benefits for the contributing spouse and a beefed-up balance for the receiver.
Self-employed or lower-income earners should pay attention to government co-contributions. If they meet the eligibility criteria, the government could contribute more for every dollar they add to their super.
If your total Superannuation balance was below $500,000 last June and you still need to fully utilise the concessional contributions cap over the past five years, you can utilise any unused amounts.
This year presents your final opportunity to take advantage of unused amounts from the 2018/2019 financial year.
Choosing where your super is invested can feel like picking a horse at the Melbourne Cup. A bit of research and an understanding of your risk tolerance can go a long way. Diversified portfolios can reduce risk, but something must be said for tailoring your investments to suit your retirement timeline.
For the forward-thinking couples, Self-Managed Super Funds (SMSFs) might tickle your fancy. They offer control over your investments, but with great power comes great responsibility. It's not for everyone, but it's the golden ticket for some.
Earnings and capital gains within super are taxed at a lower rate, making it a tax-effective way to save for retirement. And when it comes to accessing your super, knowing the ins and outs of tax implications is crucial.
Super might be outside of mind for those running their show, but it should be. Using super to fund business growth or planning a smooth business succession can be savvy strategies. And let's remember Transition to Retirement (TTR) income streams allow you to access part of your super while you're still working.
It's vital to stay informed about policy changes. When the going gets tough, remember that seeking professional advice is OK. Sometimes, a fresh perspective can make all the difference.
Let me tell you about a couple; let's call them Jo and Alex. They were both in their late 40s, running a successful café together. They hadn't paid much attention to their super until a friend mentioned their retirement planning. After a bit of a nudge, Jo and Alex reviewed their super together, switched to a fund with lower fees and better performance, and made additional contributions.
Fast forward a few years, and they're on track for the retirement they'd always hoped for—complete with plans to tour the country in their newly purchased caravan.
Retirement planning isn't just about ticking a box; it's about creating a future that's as bright as your past. For couples, especially those over 45 and business owners, a joint approach to superannuation can make all the difference. So, chat about your dreams, set your goals, and make super work for you. And remember, there is always time to start.
Please note this is general information only and does not consider your personal objectives, financial situation or needs. It is for information purposes only and a professional should be consulted before acting upon any such information.
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