Your 2023 Superannuation Checklist
How healthy is your superannuation?
You’ve worked hard to earn every dollar and you deserve a comfortable retirement. But do you know how much you’ll need to retire comfortably in Australia? And what should your superannuation fund look like to ensure you can enjoy the retirement you deserve?
The Association of Superannuation Funds of Australia (ASFA) suggests that a couple looking for a ‘comfortable’ retirement needs to spend about $62,828 per year, while single people will need around $44,412 annually.
This means, to retire at 65 and live a comfortable lifestyle for 20 years, you would need a superannuation balance of approximately $875,000 for a couple and $620,000 for a single person. Remember, these figures are an estimate and the actual amount can vary depending on various factors such as your lifestyle, medical expenses, and the cost of living in your area.
Now, take a moment to consider – are you on track to reaching these numbers? It may be time to review your superannuation summary report.
Remember, a healthy superannuation fund isn’t just about the balance, it’s about regular, consistent contributions. Your employer is legally obligated to contribute 10.5% of your salary into your super fund. From 1st of July 2023, super contributions will increase to 11%. These super contributions can significantly boost your savings over time.
Your 2023 Superannuation checklist
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Ensure Contributions are within Contribution Caps
Verify that your superannuation contributions, including employer contributions and personal contributions, do not exceed the annual contribution caps set by the Australian Taxation Office (ATO). -
Check Employer Super Guarantee (SG) Contributions
Confirm that your employer is contributing the mandatory Super Guarantee (SG) contributions on your behalf, which is currently set at 10.5% of your eligible earnings. -
Review Salary Sacrifice Arrangements
If you have opted for salary sacrifice, review the arrangement to ensure it aligns with your financial goals and takes advantage of any tax benefits. -
Consolidate Superannuation Accounts
Consider consolidating multiple superannuation accounts to reduce fees and streamline management. Compare fund performance and fees before making a decision. -
Review Investment Options
Evaluate your superannuation fund’s investment options and assess whether they align with your risk tolerance and long-term financial objectives. -
Nominate Beneficiaries
Ensure you have nominated beneficiaries for your superannuation in the event of your passing. Regularly review and update your nominations as circumstances change. -
Consider Salary Sacrifice Strategies
Explore the potential benefits of salary sacrificing additional funds into your superannuation to reduce your taxable income and increase retirement savings. -
Review Insurance Coverage
Assess your superannuation fund’s insurance coverage to ensure it adequately meets your needs. Consider life insurance, total and permanent disability (TPD), and income protection options. -
Understand Government Co-Contribution
Determine whether you are eligible for the government co-contribution scheme, which provides additional contributions to eligible individuals who make personal after-tax contributions. -
Seek Professional Advice
Consider consulting with a financial advisor or tax professional who specialises in superannuation. This ensures you’re maximising your tax benefits and making informed decisions.
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