5 Things Seniors Need to Know About Superannuation
You might not realise that there’s a problem with your superannuation until it’s time to retire and start living off of the funds. There are 5 things you need to know that can directly affect your retirement amount. If the amount you receive seems too small, it might mean that funds were taken out before retirement, or you may not have located all of your superannuation accounts. Careful personal finance and budgeting can get you by until you sort out what the problems might be.
Accessing the Super before Age 55
There are very few reasons that allow you to access your superannuation before the age of 55, but Centrelink can assist in times that you are without means to support yourself. The problem is that it will take a chunk of the money out of the loop that would normally be invested to earn your overall retirement income. When you do get to senior age, the difference might be quite noticeable. If you’ve had to dip into the super for any reason, try and replace the funds as soon as you can.
Finding Your Lost Super
Having multiple employers can make it easy to lose track of where all of your supers might be. The Australian Tax office has a SuperSeeker tool that can locate every super you’ve had since you began working. You can pull all of these funds together into one fund. Having them shuffled on in smaller accounts means that you are losing money through unnecessary fees.
Get Your Government Contribution if You Continue to Work Part-Time
The government will add dollar for dollar of every dollar you add to your super after taxes, up to $1000. This is a good time to take the extra money you are making and power pack your superannuation account. Think of the difference an extra $2000 a year will make to your overall income level. Four or five years of serious saving of extra money can bring your income level up more than you think.
Getting Your Superannuation When You Leave Australia
If you were temporarily working in Australia, with proper Visa, you can request your super funds as long as you have left Australia and the Visa is no longer active. You’ll need to have specific details of your employment and the time you were here, but it’s not that difficult to make a request to the Australian Tax Office.
Practice Frugal Spending
Find ways to cut back and save money if your super funds seem a bit thin. Poor and late planning does affect the amount you receive when you retire. Create a realistic budget and stick with it. Use services that offer senior discounts when possible. It might mean that you have to continue working some after retirement. There are a lot of businesses that will hire seniors because they value the experience that a senior worker possesses. Eliminate impulse spending. If you have to retain a credit card, try and find one that offers cash back rewards and benefits.
Superannuation can make all the difference in the world to how well you can enjoy retirement. Do your homework, so that you know all the ways of getting the most out of those funds. By not taking money out early and simply being practical can help you enjoy retirement on your super funds.
