Superannuation advice, without the jargon.
Superannuation advice matters more than most people think. For a lot of Australians, super is the biggest thing they own after the house — and the one they look at least. We treat it as part of the family finances rather than a statement that turns up once a year and goes in a drawer.
What we look at.
Most super decisions have nothing to do with picking a fund. They are about how much goes in, where it comes from, in what order, and what the insurance buried inside the fund would actually pay you. We work through each of those in writing.
It sits next to your tax, your debts and your insurance. Changing what you put into super rarely makes sense on its own — you have to look at the rest of the plan at the same time.
Six things to get right.
None of these works on its own. How much of each one suits you depends on the other five, and on your tax position outside super.
Fund selection
Industry fund, retail fund, or running your own. We compare the fees, the insurance you get with it, what you can invest in, and what you actually need right now.
Rolling accounts together
Most people have two or three accounts. Before combining them we check exit fees, tax sitting in the old fund, and any insurance you would never get again.
Salary sacrifice
Money going into super from your pay before tax is taxed at 15% instead of your normal rate. How much depends on the yearly cap and what you can actually spare.
Free money from the government
Earn under the threshold and put in some of your own after-tax money, and the government adds up to $500. Households with two incomes miss this all the time.
Topping up a partner's super
If one of you has been out of work or raising kids, you can put money into their super or split yours with them, and get a tax break for it.
The insurance inside your super
Holding life and TPD cover in super is easy on the budget, but it is usually thinner than you think. We read the actual policy wording, not the brochure.
Combining old accounts, done properly.
“Roll all your super into one account” is the most common advice going, and one of the easiest ways to do real damage. Old accounts often carry insurance you simply could not buy today, particularly if your health has changed since. Some funds charge to leave, and some have tax built into the price of the units.
So we get the statements, read the insurance wording, and work out what you would actually be giving up before we suggest moving anything. If the old cover is worth keeping, we say keep it. There is more on how default cover compares to a proper policy on the life insurance and income protection pages.
- Insurance you already hold
- Fees for leaving
- Tax sitting in the fund
- Any defined-benefit portion
- Who you have nominated
- What you can invest in
Questions we get a lot.
Usually, but not always. If one of your old accounts has insurance in it that you couldn't get today because of your health, closing that account destroys the cover for good. We check every account before suggesting you move anything.
For most people earning over about $45,000, yes. Money going into super is taxed at 15%, against 30% or more if it lands in your pay packet. The maths is hard to argue with. How much you put in is capped each year, and very high earners pay a bit more tax on it.
No. Only when it genuinely suits you. We do both the advice and the lending for these, and have 30-odd clients running their own funds — which also means we will happily tell you when an industry fund is the better answer, because plenty of the time it is.
It depends on what is involved. If you only want advice on super, we quote it in writing after the first conversation — which is free.
Keep reading
- Financial planning overviewThe main page — what a plan covers and how it's written.
- Retirement planningWhen you can stop, and what you live on after.
- Tax-effective investingKeeping more of what you earn, legally.
- SMSF advice and lendingRunning your own fund, and borrowing inside it.
- Personal risk insuranceWhether to hold cover in super or outside it.
Information on this page is general in nature. It does not take into account your personal objectives, financial situation, or needs. Read the relevant Product Disclosure Statement and consider whether personal advice is appropriate before acting on any information here.
Ready to tidy up the super?
The first conversation is free and you're not committing to anything. Bring your latest super statements and we'll go through what is worth changing and what isn't.