On 1 July 2017, some of the biggest changes to Australian superannuation came into effect – making what was already a confusing set of rules even more complex. This means if you’re nearing retirement, you need to review your strategy to make sure you can enjoy the retirement you’ve worked so hard for.
SUPER LIMITS APPLY
DON’T BE CAUGHT SHORT
The new $1.6 million total super balance cap and transfer balance cap could mean that superannuation is no longer the silver bullet strategy you’d hoped it to be for your retirement needs. While $1.6 million may sound like a lot, when you think about what you need to live the life you want after work, super may come up short.
If you’re affected by the new caps you should speak to an expert who can help you decide on the best strategy for your unique situation. Your options could include:
- Continuing to maximise your concessional (before-tax) contributions; these are not impacted by the $1.6 million total super balance cap
- Splitting your concessional (before-tax) contributions with your spouse each year
- Cashing out some of your super and contributing it to your spouse’s super account, provided you are both eligible to do this
- Using the sale proceeds of your business (if you’re an eligible small business owner) to boost your super balance beyond the total super balance cap; the timing of these contributions is critical in maximising your total superannuation savings
- Investing in alternative structures
A RICH LIFE FROM 50 TO 100
A guide to unfurling the sails for your second wind.
Living a rich life means different things to different people – yet the one thing successful Australians share is wanting to make the most of life, keeping themselves and their finances in good shape. Find out how to keep your finances in shape by downloading our free book.