Whether you’re looking to retire comfortably or want to make sure you’re not running out of money in retirement, it’s essential to close your superannuation gap.
And that’s where we come in! We’re a retirement planner and accounting firm helping Australians close their superannuation gap.
We’ll work with you to create a retirement plan that suits your needs and goals and ensure you’re on track to retire comfortably. So if you’re ready to start planning for your retirement, contact us today!
As we live longer and plan to retire later, we must ensure our superannuation will last the distance. This means knowing how much we need to save and closing any gaps in our retirement planning.
RSM Australia’s accounting firm has put together a quick guide on how Australians can close their superannuation gap and comfortably retire.
“It is never too late to start planning for retirement,” says Francis Moore, a senior financial planner at RSM Australia.
“Australians are living longer and healthier lives, which is great news. However, this means we need to consider how our retirement savings will need to last us for a longer period of time.”
To close your superannuation gap and retire comfortably, Mr Moore recommends the following:
– Make regular contributions: By making regular contributions to your superannuation, you will be able to take advantage of compound interest, which can significantly impact the final value of your retirement savings.
– Review your investments: It’s essential to review your investment mix regularly to ensure it is still aligned with your risk profile and goals. As you age, you may want to shift your investments into less volatile assets such as cash and fixed interest.
– Consider salary sacrificing: Salary sacrificing is a great way to boost your superannuation savings. It allows you to contribute pre-tax dollars into your super fund, which can reduce the amount of tax you pay.
What is superannuation?
Superannuation is a retirement savings plan that is available to all Australians. It is a long-term investment that allows you to save for retirement and enjoy a comfortable lifestyle later in life.
There are two types of superannuation:
– Accumulation accounts allow you to make regular contributions to your account and earn interest on your balance. You can access your money when you reach retirement age.
– Defined benefit accounts: These accounts provide you with a set income in retirement, based on your account balance and years of service. You can usually access your money from age 55 onwards.
The Australian Government has set up many rules and regulations around superannuation to ensure that it is fair and adequate for everyone involved. For example, employers must make compulsory contributions to their employees’ superannuation accounts (known as Super Guarantee contributions). Additionally, workers can make voluntary contributions to their super accounts.
There are also tax benefits associated with superannuation, which can help you to boost your savings. For example, the Australian Government will provide a tax rebate for low-income earners who make voluntary contributions into their super accounts (known as the Low Income Super Contribution).
If you are self-employed, you can claim a deduction for any personal contributions into your super account. This means you will only pay tax on the assistance you make at your marginal tax rate. Any earnings on your investment will be taxed at 15%, regardless of your marginal tax rate.
What is the superannuation gap?
The superannuation gap is the difference between the amount of money you have saved for retirement and the amount of money you will need to have a comfortable retirement.
There are some ways to close your superannuation gap. The most important thing is to start saving as early as possible—the earlier you save, the more time your money has to grow.
Another way to close your superannuation gap is to make sure you contribute enough money to your superannuation account. The Government requires employers to contribute 9.5% of your salary into your superannuation account, but you can choose to contribute more if you want to.
You can also close your superannuation gap by investing some of your savings into shares or managed funds. This can be a risky way to complete your superannuation gap, but if done correctly, it can significantly increase your retirement savings.
If you are still working, one of the best ways to close your superannuation gap is to salary sacrifice into your super fund. This means that instead of taking home all your salary, you agree with your employer to sacrifice some of it into your super fund. The benefit is that you pay less tax on the money that goes into your super fund, and the money can grow tax-free until you retire.
Closing your superannuation gap can be challenging, but starting as early as possible is crucial, and taking advantage of all the ways you can boost your savings. With some planning and effort, you can retire comfortably with enough money to support yourself.
Why is it essential to close the superannuation gap?
There are many reasons why it is crucial to close the superannuation gap. One of the most important reasons is that it can help you retire comfortably.
If you have a large superannuation gap, it means that you have less money saved up for retirement. This can strain your finances when you retire and make it challenging to maintain your standard of living.
Another reason why it is vital to close the superannuation gap is because it can reduce the amount of tax you pay. If you have a large superannuation balance, you will be taxed at a higher rate when you withdraw your money in retirement.
Finally, closing the superannuation gap can also help protect your family during your death. If you have a large superannuation balance, your family will receive a death benefit payment which can help to cover expenses such as funeral costs and any outstanding debts.
How to close the superannuation gap
Are you among many Australians worried about having enough money to retire comfortably? You’re not alone. A recent study showed that almost 60% of Australians are concerned about their ability to support themselves in retirement financially. The good news is that you can take steps to close your superannuation gap and retire comfortably. This article will outline some of the best ways to do that.
Use a retirement planner.
Using a retirement planner is a great way to see how much you need to save to retire comfortably. A retirement planner will consider your age, salary, superannuation balance, and other factors to develop a realistic savings goal.
There are several different retirement planners available, but choosing one that is appropriate for your situation is essential. For example, suppose you are self-employed or have a complex financial situation. In that case, you may need to use a more sophisticated planner than someone who is employed and has a simple superannuation balance.
Once you have used a retirement planner to develop a savings goal, you must create a plan to ensure you reach it. This may involve making regular contributions to your superannuation, investing in other assets such as property or shares, or saving money in a separate savings account.
If you’re not sure where to start, plenty of resources available online and from financial institutions can help you put together a retirement plan.
Use a retirement plan.
There are several ways to close the superannuation gap; one of the most effective is to use a retirement plan. A retirement plan is an excellent way to set aside money for your retirement, and it can be used to invest in various assets, including stocks, bonds, and mutual funds.
Retirement plans are available through a number of different providers, and they can be customized to suit your individual needs. If you are self-employed, you may want to consider a Solo 401k plan. These plans offer many of the same benefits as traditional retirement plans but are designed specifically for self-employed individuals.
Another option for closing the superannuation gap is to make catch-up contributions. Catch-up contributions are extra contributions that can be made to your superannuation account if you have not been able to make the maximum contribution for that financial year. For example, if you are 50 years old or over, you may be able to make catch-up contributions of up to $6,000 per financial year.
If you are looking for more information on how to close the superannuation gap, you should speak to an accountant or financial planner. They will be able to provide you with expert advice on the best way to save for your retirement.
Use an accounting firm
Accounting firms can provide extensive financial planning and advice services to help you map out a plan to close your superannuation gap. They can help you understand your current financial situation, set realistic goals, and devise strategies to achieve them.
A good accountant can also provide tax advice and structure your investments in the most tax-efficient way. This can save you significant money in the long run and put you in a much better position to retire comfortably.
It is possible to close your superannuation gap and retire comfortably. However, it will take some effort on your part. You must ensure that you contribute enough to your superannuation fund and invest in the right assets. You may also need professional advice from a retirement planner or an accounting firm.