If you’re like most Australians, you go to work and get paid, safe in the knowledge that your employer has your back. That is, they’re taking an ample cut of your pay packet and plonking it into your chosen super fund.
And that’s where most people leave it. They know their super is accumulating out there somewhere, but they don’t really give it another thought. After all, they don’t need it right now.
But your poor super doesn’t like being left in the corner. If you continue to ignore it, you could be slugged with a plethora of extra taxes and hidden fees. And this means you’ll have way less than you bargained for when you eventually retire.
Recent rule changes to the super scheme have unearthed a series of savings sappers, putting you at risk of a whopping 90% tax hit.
So, here’s where you need to watch your feet:
Too much life insurance
It’s great to have enough life insurance up your sleeve, but many Aussies have more than they need. Some funds are just wasting money that would see better growth elsewhere. Check the level of your premium to determine if it’s working in your favour.
It might sound like a good plan to keep topping up your super. After all, the more you put in, the more you’ll have when you need it most. But if you contribute more than the higher capped amount, you may have to pay up to 94% in tax!
Some bosses ignore their super obligations, especially if they’re facing financial difficulty. Protect yourself by checking your super fund transactions every six months. Don’t simply rely on your pay slip as these are not always accurate.
And if you’re looking for a way to top up your retirement fund without all the added drama, then GSA’s property investment model is just the thing.
Give us a call today and set your savings free.